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Housing deficit in Nigerian cities

NIGERIA’S housing sector is in crisis, with an alarming shortage of affordable homes pushing millions of desperate citizens into slums and informal settlements. The acute deficit has worsened poverty, deepened inequality, and left a significant portion of the population without basic shelter. This problem, which is acutely pronounced in the cities, has reached a critical stage where urgent intervention is needed to address the causes and provide lasting solutions.

According to reports from Nairametrics, the deficit is acute in the FCT, the federal capital, with many citizens living in overcrowded, poorly constructed informal settlements. These areas lack potable water, electricity, and proper sanitation, exacerbating the hardships faced by low-income residents.

In 1950, Abuja’s population was 18,977. By 2024, it has grown to 4.02 million, per the World Population Review. It is experiencing a rapid influx of people seeking employment or fleeing insecurity in other parts of the country, leading to a strain on available housing. The lack of affordable options has forced many into slums, where they must make do with inadequate living conditions.

This is worsened by the skyrocketing cost of land, official permits and building materials, making it nearly impossible for developers to offer affordable housing solutions.
The housing crisis in Abuja mirrors broader issues across Nigeria. Therefore, for many, the dream of homeownership is as far off as ever.

National statistics show that the country faces a housing deficit of approximately 28 million units, with experts predicting a need for 700,000 new homes annually. With the growing urbanisation, these deficits are most pronounced in the major cities, where access to affordable homes becomes increasingly limited, pushing the poor into slums and informal settlements.

The World Bank says Nigeria’s urban population is expected to grow by over 200 million by 2050. This is a potential social crisis. The NBS and IMF agree that the lack of affordable housing options has led to the proliferation of slums, particularly in urban centres.
The main factors contributing to this crisis are multifaceted. High land acquisition costs, coupled with the increasing cost of building materials, have made it nearly impossible for developers to build affordable homes. Moreover, a lack of a comprehensive mortgage system has created a significant barrier for middle and low-income earners to purchase homes.
The Federal Government’s National Housing Programme and other initiatives have been marred by inadequate funding, corruption, and poor project execution.

Additionally, the housing crisis affects more than just the urban poor. It has become a drag on Nigeria’s overall economic growth, as the construction industry, which has the potential to employ millions and stimulate local economies, remains stifled by bottlenecks. The real estate sector, despite its immense potential, faces a series of challenges, including high inflation rates, policy instability, and a lack of infrastructure development.

As more Nigerians are pushed into informal housing markets, it exacerbates poverty and undermines efforts to improve living standards. Those in the lower income brackets are left to survive in environments where health, security, and opportunities for upward mobility are severely limited.

So, the sector needs a comprehensive overhaul. The government should prioritise affordable housing by increasing investments in housing finance and infrastructure development. Public-private partnerships could play a pivotal role in addressing the deficit.

The deficit is a major problem that requires urgent attention. It is not just a housing issue—it is an economic and social one that impacts the country’s entire development. For Nigeria to realise its potential as an economic powerhouse, addressing the housing deficit must become a central focus of policy reform.

Without this, millions will remain trapped in substandard living conditions, while the country’s cities will continue to swell with more impoverished citizens, compounding the already daunting challenge of urban poverty.
 

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