Nigeria’s 14.9m Housing Deficit Requires Urgent Federal, State Action – Akinronbi

LAGOS – Nigeria’s estimated housing deficit of 14.925 million units requires urgent and coordinated interventions by federal and state governments to address rising accommodation costs, rapid urbanisation and inadequate housing supply, the Founder and Chief Executive Officer of Hermitage Estates Limited, Chief Akin Akinronbi, has said.

Akinronbi, a Fellow of the Nigerian Institute of Management (FNIM), said the country’s housing crisis had been exacerbated by rapid population growth, rural-urban migration, rising land prices, increasing construction costs and limited access to affordable mortgage financing.

In a position paper on Nigeria’s housing challenges, he noted that access to decent and affordable accommodation had become increasingly difficult for ordinary Nigerians, particularly low- and middle-income earners in major urban centres such as Lagos, Abuja and Port Harcourt.

He said the influx of people into cities in search of employment and better economic opportunities had increased demand for housing beyond available supply, resulting in overcrowding, informal settlements and escalating rental costs.

According to him, inadequate urban planning and insufficient investment in housing infrastructure have further worsened the situation, leaving many families struggling to secure decent accommodation.

Akinronbi identified the high cost of land as another major obstacle to housing development, attributing it to increasing demand, land speculation, complicated registration procedures and uneven urban development.

He explained that expensive land documentation and government approval processes often increased developers’ operating costs, which were subsequently transferred to prospective homeowners and tenants.

The real estate expert also identified the rising prices of building materials, including cement, steel, roofing sheets and imported fittings, as major factors contributing to the high cost of housing construction.

He added that transportation and labour expenses, coupled with limited access to affordable mortgages, had made homeownership increasingly unattainable for many Nigerian families.

On rental accommodation, Akinronbi expressed concern over the practice of demanding substantial advance payments, sometimes covering one or two years, saying it placed considerable financial pressure on households with limited incomes.

He warned that rising rents were forcing some families into overcrowded homes, informal settlements and substandard buildings lacking adequate sanitation, electricity and potable water.

According to him, such conditions have adverse implications for public health, security, productivity and the overall quality of life.

Akinronbi acknowledged the Federal Government’s efforts to address the housing shortage through initiatives such as the Renewed Hope Housing Programme and the Renewed Hope Cities and Estates initiative, which seek to increase the supply of affordable homes through housing projects and partnerships with state governments and private developers.

He also highlighted the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) as an intervention designed to improve access to long-term mortgage financing.

According to him,, the Federal Government reported in June 2026 that MREIF had provided ₦128 billion in mortgage financing to 1,859 Nigerian families, offering loans at a fixed interest rate of 9.75 per cent and repayment periods of up to 20 years.

He further identified the National Land Titling, Registration and Documentation Programme, known as Land4Growth, as part of the government’s efforts to improve land administration, digitise records and reduce the time and cost associated with obtaining legal land titles.

The Federal Mortgage Bank of Nigeria’s housing finance and rent-to-own options were also identified as measures aimed at making homeownership more accessible.

However, Akinronbi stressed that the success of these interventions would depend on effective implementation and stronger collaboration between the federal and state governments.

He argued that while the Federal Government had provided instruments to facilitate home acquisition through mortgage schemes, state governments must take greater responsibility for expanding the actual supply of housing.

According to him, state governments can increase housing stock through direct construction by their ministries of works and housing, joint ventures with private developers, concessions under Public-Private Partnerships (PPPs), development leases, and Design-Build-Operate-and-Transfer (DBOT) arrangements.

He cited the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos as an example of a concession arrangement that could offer useful lessons for housing development.

Akinronbi maintained that adopting similar partnership models in the housing sector could help governments mobilise private capital, reduce pressure on public finances and accelerate the delivery of residential properties.

He urged state governments to make suitable land available for housing projects while creating an enabling environment for private developers to provide affordable homes for different income groups.

The real estate entrepreneur also called for improved access to housing finance through funding support, subsidies and low-interest mortgage schemes targeted at low- and middle-income earners.

He said simplifying land registration and property documentation procedures would encourage investment, reduce development costs and improve confidence in the housing market.

He further advocated increased investment in roads, electricity, water supply and sanitation to open up less congested areas for residential development and ease pressure on major cities.

According to him, upgrading informal settlements and enforcing effective urban planning regulations would also help address overcrowding and prevent uncontrolled development.

He urged governments to strengthen public-private partnerships and establish effective monitoring mechanisms to ensure that affordable housing projects deliver the intended benefits to Nigerians.

Akinronbi emphasised that resolving Nigeria’s housing crisis required sustained action, transparency and coordinated policies that prioritise the needs of ordinary citizens.

He called for the expansion of social housing, improved land administration, increased local production of building materials, wider access to mortgage financing and stronger tenant protection measures.

He maintained that government interventions must go beyond policy announcements to ensure that completed houses are genuinely affordable and accessible to the people who need them most.

According to him, affordable housing should become a practical reality for ordinary Nigerians rather than a privilege reserved for high-income earners.

He added that a combination of adequate funding, efficient land administration, infrastructure development and private-sector participation would be critical to reducing the housing deficit, moderating rental pressures and improving living conditions across the country.