Nigeria’s housing crisis: Call for urgent action

By Pat Onukwuli

Nigeria, a nation blessed with abundant natural resources and a rapidly growing population, faces an alarming housing crisis. Finding adequate and affordable shelter is becoming impossible for millions. The soaring cost of rent, poor infrastructure and a significant mismatch between income levels and housing affordability have compounded the difficulties faced by Nigerians. This situation has left vulnerable citizens to fend for themselves in an increasingly unregulated and exploitative rental market.

According to Maslow’s Hierarchy of Human Needs, housing ranks just after water and food at the base, emphasising its fundamental role in human well-being. This is particularly concerning in Nigeria, where housing is recognised as a social service under Section 16(2)(d) of Chapter II of the Fundamental Objectives in the 1999 Constitution. The Constitution mandates the state to provide suitable and adequate shelter for its people, yet the government has failed to act on this obligation.

As a result, the scale of Nigeria’s housing crisis is staggering. The housing deficit is estimated to be over 28 million units, and this gap continues to grow due to rapid urbanisation and an increasing population. According to the National Population Commission and the World Bank, Nigeria’s population is expected to surpass 375 million by 2050, with nearly70 per cent of its people living in urban areas. This demographic shift places immense pressure on an already overstretched housing sector.

The rise in rent prices is one of the most immediate manifestations of the housing crisis. In cities like Lagos, Abuja, and Port Harcourt, rent has soared far beyond what most Nigerians can afford. For example, a modest two-bedroom apartment in Lagos can cost as much as N1,000,000 annually, an amount out of reach for the average Nigerian, whose monthly minimum wage is less than N100,000. This creates an untenable situation where many are forced to live in overcrowded informal settlements on the outskirts of cities, where living conditions are poor, sanitation is inadequate, and essential services are lacking.

Urban sprawl and the proliferation of slums across Nigerian cities directly result from the lack of affordable housing. As more people migrate to urban areas seeking better opportunities, they are pushed into informal settlements where they face hazardous living conditions. These areas lack basic infrastructure like clean water, sanitation, electricity, and healthcare. As a result, many Nigerians are trapped in a cycle of poverty and inequality, living in unhealthy and insecure environments that prevent them from thriving and contributing to the economy.

Over the years, various Nigerian governments have launched initiatives to address the housing deficit, but these efforts have often been poorly funded and ineffectively implemented. One example is the National Housing Fund (NHF), which was created to provide affordable housing loans to Nigerians. While the fund was designed to assist low-income earners, it has primarily been ineffective due to high interest rates, stringent eligibility criteria, and bureaucratic obstacles that make it difficult for most Nigerians to access loans.

Similarly, the Federal Government’s Mass Housing Scheme, intended to deliver affordable homes across the country, has been marred by mismanagement, corruption, and a lack of accountability. Many housing units built under this program have been abandoned, leaving the country with little to show for the investment. Local governments, too, have struggled to deliver on housing promises, hindered by insufficient resources, poor governance, and political infighting.

The housing crisis has far-reaching social and economic consequences. Poor housing conditions contribute to health issues, particularly in informal settlements with limited clean water and sanitation access. The spread of diseases such as cholera and malaria is prevalent in these areas, and inadequate housing exacerbates an already dire situation.

In addition, the crisis perpetuates social inequality. While the wealthy live in luxurious homes, the poor are confined to overcrowded slums. The lack of affordable housing prevents upward social mobility, as many Nigerians cannot invest in education, healthcare, or entrepreneurship. This lack of access to essential services further entrenches the poverty cycle and stifles economic development.

The housing crisis also places a severe strain on Nigeria’s economy. High rents and the lack of affordable housing reduce disposable income, limiting consumer spending and economic growth. The real estate sector, which could be a significant driver of economic development, is stagnating due to the absence of affordable housing initiatives. Furthermore, people living in substandard housing are less likely to contribute to the economy through investments in businesses or education, further hindering the nation’s development.

Most concerning is the threat to national security posed by the housing crisis. As more Nigerians are pushed into overcrowded informal settlements, social unrest, crime, and extremism become more prevalent. The government’s inability to meet the housing needs of its citizens leads to frustration and discontent, fostering an environment ripe for instability.

The housing crisis in Nigeria is not insurmountable. The government must take immediate action to address the situation through policy reforms, public-private partnerships (PPPs), and sustainable housing initiatives. First and foremost, the government must recognise that adequate housing is a fundamental social service, not just an economic commodity. With the right policies, political will, and strategic partnerships, Nigeria can begin to resolve its housing crisis.

Therefore, a comprehensive, coordinated effort is needed to ensure that housing is accessible to most Nigerians.One potential solution is to overhaul the National Housing Fund. To make housing finance more accessible to low-income Nigerians, the government should relax eligibility requirements, reduce interest rates, and streamline the application process.

Sustainable building practices should be prioritised. The government should encourage using locally sourced, environmentally friendly materials and invest in energy-efficient technologies. These measures can reduce construction costs and ensure that housing is affordable and sustainable in the long term. Another key solution is to foster public-private partnerships in housing development. By partnering with the private sector, the government can access additional resources and expertise to fund large-scale, affordable housing projects.

International examples offer valuable lessons for Nigeria. Singapore’s successful public housing program, which provides high-quality, affordable homes through a government-run initiative, is a model that Nigeria can adopt. Singapore’s approach includes long-term planning, financial assistance, and collaboration between the public and private sectors, ensuring that housing remains accessible to all.

Nigeria’s housing crisis is a national emergency that demands immediate attention. The government’s failure to provide affordable housing for its citizens exacerbates poverty, inequality, and social unrest. Housing is a fundamental right, and its delivery is essential to building a stable, prosperous, and secure nation. The time to act is now; Nigeria’s future depends on it.