Federal Government’s 2,870 Houses Unaffordable For Low-Income Earners Amid Nigeria’s Housing Crisis
Federal Government’s 2,870 Houses Unaffordable For Low-Income Earners Amid Nigeria’s Housing Crisis
Despite Nigeria’s severe housing shortage, the Federal Government’s 2,870 homes built across various states are out of reach for low-income earners, according to a report. These houses were constructed under the National Housing Programme (NHP) during the administration of President Muhammadu Buhari, supervised by former minister Babatunde Fashola.
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The report highlights that the housing deficit in Nigeria is staggering, with an estimated 20 to 22 million homes missing from the national housing market. The average cost of housing exceeds the minimum wage, and high property prices and soaring rents have exacerbated the crisis.
Challenges such as a lack of efficient mortgage systems, poverty, rising construction costs, high inflation, declining household income, and rural-urban migration contribute to the housing shortage. Previous government efforts to address the issue have had limited success.
The report indicates that Nigeria’s current housing production, at approximately 60,000 units per year, is grossly insufficient for a population of nearly 200 million people. The cost of bridging the housing deficit is estimated at $363 billion, and it is expected to continue growing.
While the real estate sector’s contribution to GDP increased to N8.9 trillion in 2022, there is concern that the Federal Government’s NHP scheme has introduced costly housing prices that are unaffordable for low-income earners. The mortgage system remains challenging to access, and most contributors to the National Housing Fund (NHF) cannot afford the available schemes.
Experts and developers argue that the government has performed poorly in providing affordable housing, and past administrations lacked direction and commitment in mitigating the housing deficit. They suggest that the private sector should play a more significant role in housing development, with government support through an attractive mortgage system and an enabling environment.
The Minister of Housing and Urban Development, Ahmed Dangiwa, acknowledges the pricing and accessibility issues with the NHP houses and vows to prioritize affordability. He emphasizes the goal of promoting affordable housing to benefit Nigerians.
Housing experts call for policy enhancements that attract investment into the sector and advocate for a demand-driven approach to affordable housing. They also suggest creating a revolving intervention fund for financing housing off-takers directly or through their cooperatives at a low-interest rate to address the housing crisis effectively.
