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Affordable Housing In Nigeria: A Dream Or Reality?

  • By Favour Secondus
  • May 13, 2024
  • 79 Views

The Quest For Affordable Housing

If there’s one thing I appreciate our people the most for, it’s not just our hustling power, but the endurance and escape we create from the daily chaos we encounter. Imagine bustling cities full of life, vibrant communities where everyone is full of energy, and a growing population seeking the comfort of a place to call home – beautiful, isn’t it? Yet, amidst the hustle and bustle, lies the pressing challenge which is the ability to secure homes to live in, and spaces to do our businesses, at affordable prices. 

You’ll agree with me that getting a good job easily in Nigeria is a magical story one would love to share at any given opportunity, but finding a decent and affordable apartment with close proximity to that place of work feels like searching for a young Governor in Nigeria – Google will definitely run out of options.

It’s not only sad that rent eats up a good portion of earnings, but what are the available options first off? Cramped rooms in overcrowded houses or high-rise apartments with sky-high prices. So, finding a place that’s both comfy and doesn’t break the bank makes things tricky. Well, you’re not alone, as this has become a hot topic in Nigeria; which is why we’re going to have a look at it today, from challenges to opportunities, and the pathway to a brighter future.

The Challenge

I think it’s fair to define ‘affordable housing’ as finding a home that’s comfy and doesn’t cost an arm and a leg. But here’s the thing: in Nigeria, it’s not as easy as it sounds as there are challenges facing affordable housing, including:

Rapid Urbanization and Population Growth

With the rapid increase in urban population (about 54.3%) and more people migrating to some of the big cities, looking for jobs and seeking better lives, finding a place to live becomes super tough. It’s like trying to fit too many puzzle pieces into one puzzle; things get crowded real quick. This leads to overcrowding and limited housing options.

Inadequate Infrastructure

In many areas, inadequate infrastructure poses a big challenge, making it difficult for residents to access basic amenities like water, electricity, and transportation. Without these essentials, even if there were more houses, the living conditions wouldn’t be ideal, so affordable housing isn’t said to be achieved.

High Construction Costs/Limited Access To Financing

The cost of building a home has been rising over time due to factors like the cost of materials and labor. Also, the cost of borrowing and procedures involved for most loan facilities within the country have become high and tedious, posing significant barriers to homeownership, preventing many Nigerians from affording their own homes.

Complex Regulatory Policies

Complex regulatory policies have further slowed down the building process, adding extra time and expense in creating affordable housing, resulting in delays and even disappointments in worst case scenarios.

● With limited choices, sadly people often resort to living in informal settlements or slums. These areas, while offering some shelter, lack proper sanitation.

These challenges have led to an increasing demand which surpasses the availability of comfortable spaces. While they are real and persistent, it’ll be worthy to note that there’s a wave of innovation and collaboration rising to meet them.

Opportunities For Transformation

Despite the challenges we’ve discussed, there’s still hope for transformation in our real estate industry. Let’s look at some exciting opportunities that could change the game for affordable housing in Nigeria:

  1. Micro-Apartments: These are compact living spaces that provide a cozy and efficient living solution. These small, yet functional units are becoming increasingly popular in cities across Nigeria, (like Port Harcourt, Benin, Enugu, Lagos to mention but a few) addressing the housing shortage. The micro apartments are designed to maximize affordability and efficiency, by offering residents a smart and practical housing option. It’s like having your own cozy retreat right in the heart of the city.
  2. Rent-to-own Schemes: Many people have dreamt of owning their own home, but they’ve struggled to save up enough money to get it. Well, with rent-to-own schemes, that dream could become a reality sooner than you think. Here’s how it works: instead of paying rent that disappears monthly or annually, you pay towards eventually owning your home. It’s like renting with a twist – here, each payment that is made brings you one step closer to homeownership. Plus, it’s a win-win for everyone; you get to build equity in your home, while the landlord gets a reliable tenant.
  3. Government Initiatives: The Nigerian government is taking proactive steps to address the housing deficit in the country. Through various initiatives such as housing subsidies, land allocation programs, and regulatory reforms, the government aims to make homeownership more accessible and affordable for its citizens. Also, by providing financial assistance to developers, making land available for development, and streamlining the building process, the creation of affordable housing options across the nation is facilitated. For example, the government has introduced schemes like the NHF Act (National Housing Funds) and the Family Homes Fund, which provide funding and support for the construction of affordable housing units. Additionally, efforts to reform land policies and regulations are underway to make land acquisition and development more efficient and cost-effective for developers. These initiatives will serve as a guiding light in the journey towards addressing the housing deficit in Nigeria. By working collaboratively  with stakeholders and implementing strategic interventions, the government will be able to finally pave the way for a brighter future where safe, decent, and affordable housing is within reach for all Nigerians.
Possible Solutions
  1. Policy Reforms: If regulations guiding housing in Nigeria are simplified and construction costs lowered, this will go a long way in helping out. Also, inclusive zoning needs to be championed in order to create a conducive environment for affordable housing development.
  2. Public-Private Partnerships: Private entities collaborating with the government can help leverage the resources and expertise needed in tackling large scale housing projects or development.
  3. Community-Driven Initiatives: Local communities should be empowered to participate in decision-making and tailor housing solutions to their specific needs. This will in turn foster a sense of ownership and promote sustainable development.

By adopting a multifaceted approach that combines policy reforms, public-private partnerships, and community-driven initiatives, Nigeria can effectively tackle the challenges of affordable housing and work towards ensuring that safe, decent, and affordable housing is accessible to all its average citizens.

Final Thoughts,

Nigeria’s booming economy and growing population (an estimated 229 million in 2024) has created a massive demand for affordable housing.  While challenges exist, innovative solutions and collaboration are paving the way for a brighter future.

By addressing these issues head-on and seizing opportunities for transformation, we can ensure that every Nigerian has access to safe, decent, and affordable housing.  At Muna Real Estate, we’re passionate about making homeownership a possibility for all.

Don’t wait!  Contact us today and let our team of experienced consultants guide you towards making your dream home a reality. Together, let’s build a future where everyone has a place to call their own.


What are your thoughts on micro-apartments? Share your ideas for affordable housing solutions in the comment section below. We hope to hear those bright ideas of yours.

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