BACKGROUND HOUSING IN NIGERIA - The Challenges

Housing is one of man's key needs. Most people would like to own their own houses. Unfortunately, there are far too many obstacles stifling the achievement of this dream of owning their own homes. In spite of Nigeria being Africa’s largest economy with a GDP of $510 billion, the housing and construction sector accounts for only 3.1% of the rebased GDP. Producing about 100,000 units houses per year, for a country of nearly 170 million, there's a shortfall of an additional 700,000 units needed each year. So, each year, there's an accumulated housing deficit somewhere in the region of 17 million units. When you add to this fact that some of Nigeria's major urban centres like Lagos, Abuja, Ibadan and Kano have a growing housing demand that's about 20 percent per annum; it is clear an intervention had to be made. The housing challenge had to be tackled from the foundation and the key obstacle to home ownership in Nigeria has been lack of access to housing finance. Housing finance in Nigeria, where it exists is grossly inadequate. Nigeria has 84 Primary Mortgage Banks (PMBs) and 20 Deposit Money Banks (DMBs).

Yet, lending by the DMBs for mortgage loans is less than 1 percent of their total assets. In the end, most Nigerians have no choice but to fall back on on personal savings to pay for their homes.

Unlocking the Housing Market in Nigeria At the beginning of the Jonathan Administration, housing reform was placed on the front burner for top priority. In 2012, President Jonathan directed the convening of a Roundtable on the Housing Sector and a Retreat on Housing Finance in Nigeria in order to address 'existing bottlenecks and unleash the potential of our housing sector'. This led to the establishment of a Housing Finance Programme Committee, chaired by the CME, with representatives from the Ministry of Lands, Housing and Urban Development, the Central Bank, and Nigeria’s mortgage and commercial banks, with the support of the World Bank and IFC. The Nigeria Housing Finance Programme as part of its…

  • 10,000 Affordable Homes Project
  • Rent-To Own Scheme
  • Land Titling

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