Nigeria's housing deficit has surpassed 20 million units, worsening the accommodation crisis across the country. Soaring construction costs and limited financing continue to drive property prices and rents higher, especially in Abuja and other major cities.
Rising construction costs fuel housing crisis
At a youth entrepreneurship programme in Abuja, Amos Gbadewole, Vice Chairman of the Real Estate Developers Association of Nigeria (REDAN) in the Federal Capital Territory, stated that rising prices of essential construction materials have significantly increased the cost of developing homes. Prices of cement, steel reinforcement bars, sand, and other building inputs have climbed sharply in recent years, making it increasingly difficult for developers to deliver affordable housing projects.
"Nigeria is a capitalist economy, and the cost of inputs determines the cost of output," Gbadewole explained. "Government regulations and incentives are needed to reduce the prices of building materials and make housing more affordable."
The increase in development costs has directly impacted rental prices, with residents of Abuja, Lagos, and other fast-growing urban centres facing record-high rents amid insufficient housing supply.
Abuja, Lagos face mounting housing pressure
With Nigeria's population now estimated at over 250 million, demand for housing continues to outpace supply at an alarming rate. Rapid urbanisation and migration into cities such as Abuja and Lagos have intensified pressure on available housing stock.
Gbadewole noted that developers face challenges beyond material costs, including difficulties in acquiring land, inadequate access to long-term financing, and shortages of skilled professionals. "Many developers do not have the capital required to purchase land and embark on large-scale housing developments," he said.
As inflation erodes household incomes, housing affordability has become a major concern for Nigerian families, many of whom spend a significant portion of their earnings on rent.
New real estate regulations gain momentum
Amid growing concerns over fraud and uncompleted projects in the property market, Gbadewole supported a bill before the National Assembly that seeks to strengthen regulation of Nigeria's real estate industry. The proposed legislation would require estate developers and realtors to obtain licences before operating, a move expected to improve transparency, professionalism, and investor protection.
The bill has passed first and second readings in both chambers of the National Assembly and awaits further legislative action. "If the law is passed, regulators will be able to identify legitimate operators and strengthen oversight of the sector," he said.
Industry experts believe stronger regulation could restore confidence in the real estate market and protect buyers from fraudulent schemes that have plagued parts of the sector.
Mortgage financing seen as key
Gbadewole also emphasised the importance of expanding mortgage financing to help more Nigerians become homeowners. He pointed to initiatives by the Federal Mortgage Bank of Nigeria and Primary Mortgage Institutions aimed at improving access to housing loans, describing mortgage financing as one of the most effective tools for narrowing the country's housing deficit.
Despite the challenges, he encouraged young Nigerians to explore opportunities in real estate, particularly in property marketing and brokerage, which often require relatively low start-up capital.
As Nigeria battles a housing shortage affecting more than 20 million households, stakeholders insist that sustained collaboration among government, lenders, and private developers is critical to increasing housing supply, stabilising rents, and making homeownership a reality for millions.
Builders and homeowners have expressed outrage over cement prices, with the current cost of about N12,000 per bag seen as excessive and damaging to affordable housing efforts. They warned that if prices remain at current levels, many Nigerians will struggle to own homes despite ongoing government initiatives to reduce the housing deficit.
