6 critical steps to achieving affordable housing in Nigeria.


Affordable housing is a major challenge for many Nigerians. The high cost of housing in the country has made it difficult for many people to own their own homes. It’s no longer news that Nigeria has an acute housing deficit estimated to be in the region of 22 million, which would require about N6trillion to fix. To properly tackle the accommodation shortage, the nation will need to build one million housing units per annum in the next 20 years in other to bridge the deficit.

Currently, the nation (both government and private sector) can only produce 75,000 housing units annually, which experts said was a far cry from what is needed to solve acute accommodation shortages among the growing Nigerian population.

However, there are ways to achieve affordable housing in Nigeria. In this post, I will explore some of the solutions that can help Nigerians achieve affordable housing.

1. Government Intervention: One of the most effective ways to achieve affordable housing in Nigeria is through government intervention. The government can provide subsidies or tax breaks to developers who build affordable housing units. The government can also implement policies that encourage the development of affordable housing, such as reducing the cost of land and providing infrastructure like roads, water, and electricity. Providing this basic infrastructures is very fundamental to creating affordable housing. This is because it makes for cost reduction on the developer, while serving as a great motivator for home seekers.
Many times, investors look out for this basic amenities before choosing a destination for their investment, and so having in it place will greatly enhance home ownership for Nigerians.

2. Microfinance: Microfinance institutions can provide soft loans to individuals and groups who want to build their own homes. These loans can be used to purchase land, build houses, or renovate existing homes. Microfinance institutions can also provide financial education and training to help individuals manage their finances better. This is neccessary since funding is cardinal for both property developers and buyers.

3. Cooperative Housing: Cooperative housing is a form of housing where a group of individuals come together to build and own their own homes. This can be a cost-effective way to achieve affordable housing as the cost of land and building materials can be shared among the members of the cooperative. Cooperative housing also provides a sense of community and social support.

4. Use of Local Building Materials: The use of local building materials can significantly reduce the cost of building a house. For example, using locally sourced bricks, stones, and timber can be cheaper than importing these materials from other countries. This can help to reduce the cost of building houses and make them more affordable for Nigerians. This is very important since affordability is key to home ownership in Nigeria. There is therefore urgent needs for the public sector in Nigeria to pay attention to developing locally made building materials for housing projects as against the current trend of high dependent on foreign or imported building materials.

5. Public-Private Partnerships: Public-Private Partnerships (PPP) can be used to develop affordable housing in Nigeria. This involves collaboration between the government and private developers to build affordable housing units. The government can provide land and infrastructure while private developers can provide the expertise and financing to build the houses.



6. Mortgages:
A mortgage is a loan that is used to purchase a home or property, and the borrower pays back the loan over a set period of time. Mortgages can be a great way to help Nigerians achieve their dream of owning a home. However, mortage options is very low in Nigeria due to both the issue of inavialability from the government, and high interest rate from private sector. Government can therefore support the citizens by providing mortgage options to finance housing.

In conclusion, achieving affordable housing in Nigeria requires a combination of government intervention, microfinance, cooperative housing, use of local building materials, and public-private partnerships. These solutions can help to reduce the cost of building houses and make them more affordable for Nigerians.


Bright PETERSIDE is a Lagos Real Estate Broker & Investment Expert based in Lagos, Nigeria.
Email: petersidebright25@gmail.com
www.brightsideconsultingltd.com