In this report, TOPE SUNDAY reviews the Housing Sector’s performance over the last two years under the administration of President Bola Ahmed Tinubu, and aggregates views of stakeholders about the sector.
Two years into President Bola Ahmed Tinubu’s administration, the Nigerian housing sector is battling with persistent inflation, a volatile foreign exchange market, and surging building material costs. But despite these challenges, stakeholders said the sector is undergoing a silent transformation.
While affordability remains a major concern for ordinary Nigerians, stakeholders across the board have acknowledged visible progress in policy reforms, stakeholder engagement, financing innovations, and new housing stock delivery.
In the last two years, the sector under Tinubu, according to a document obtained by NEWSNGR, is targeting 50,000 housing units. The document showed that seven Renewed Hope Cities, each comprising 1,000 units across the six geopolitical zones and the FCT — in Kano, Lagos, Enugu, Port Harcourt, Borno, Nasarawa, and Abuja- are underway. Also, there are still Renewed Hope Housing Estates, delivering 500 units per state in the remaining 30 states.
The document also stated that through the National Urban Renewal and Slum Upgrade Programme (NURSUP), the administration is working to address urban decay in 26 project sites nationwide.
The projects include solar street lighting, potable water systems, access roads, drainage, and waste management systems — essential infrastructure that enhances quality of life for underserved communities.
Perhaps the most inclusive aspect of the Renewed Hope housing strategy is the Social Housing Programme, which aims to deliver 100 housing units in each of Nigeria’s 774 local government areas, totalling 77,400 units.
The appointment of four strategic Housing Reform Task Teams — focused on institutional reform, project delivery, land reform, and local manufacturing — reflects a systems-thinking approach. These teams are designed to remove bureaucratic bottlenecks and foster innovation in housing delivery, finance, and planning.
In the year under review, the Federal Mortgage Bank of Nigeria (FMBN) reported a 2024 operational surplus of N11.5bn, a sign of improved fiscal discipline. In addition, the bank has committed N100bn in off-taker guarantees and direct project funding, including N27bn for Ibeju-Lekki (Lagos) and N19.9bn for Karsana (Abuja).
NEWSNGR can also report that the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) in the last year has injected the sum of N250bn into the sector, with the expectation to increase it to N1trn in the coming years.
However, despite the noticeable progress, affordability, rising building material costs, and an increase in house rents are major challenges to the sector.
NEWSNGR can report that prices of building materials have surged, and housing rents are not unbearable the development has displaced some people.
The subsidy removal is taking a toll on the housing sector, which has skyrocketed the price of building construction.
In Abuja, house rents are on the high side, and the development has forced some of the residents to move to the outskirts.
Under the present administration, house rents in Abuja, both in the city and the outskirts, have jumped to about 100 per cent from the initial price.
Speaking with NEWSNGR, the Executive Director of the Housing Development Advocacy Network (HDAN), Barrister Festus Adebayo, said the Tinubu government deserved credit for its stakeholder engagement and sector-wide reforms.
He said, “In the last two years, there have been serious engagements by the Federal Ministry of Housing and Urban Development with stakeholders. I can tell you that one of the achievements of Tinubu’s government is that it is a government that has been engaging with relevant stakeholders. This is the first time that we have had such an opportunity.
“When Dangiwa (Minister of Housing and Urban Development) came, four important committees were constituted to look into various areas that have been barriers to housing development in Nigeria. This is part of the engagement that I am talking about.
“Some professional bodies are having issues with their regulatory bodies, like NIA (Nigeria Institute of Architects) and ARCON (Architects Registration Council of Nigeria); the housing ministry has resolved that. As I speak, we don’t have that issue anymore.”
He, however, lamented that despite available housing, inflation and poor income levels have priced many Nigerians out of homeownership.
Adebayo also pointed to the impact of a high Monetary Policy Rate (MPR) of 27.5 per cent, which constrains mortgage lending and limits credit access for aspiring homeowners.
“Looking into the economy under President Bola Ahmed Tinubu, the high cost of building materials, which is a result of our exchange rates, has been a problem. This has led to an increase in the prices of houses. I can report to you now that, as we have those houses, people cannot afford them, including you.
“This is because his level of income and the inflation in the economy mean that his income is only sufficient for food. And therefore, to even pay for rent is a problem because the owners are increasing the rent because the only source of income is that house or building.
“I can tell you that under Tinubu, there have been efforts, but the barriers have been inflation, economic situation; in fact, the exchange rates look at the CBN policy, the MCR at 27.5 per cent.
“That alone is a big blow to the Mortgage Bank. It has been a barrier. Thank God for the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) that has raised N250bn, and it is targeting N1tn.
“And giving an appraisal of two years, I must give kudos to the government because MOFI has started. But I must give a knock to the government in the area of inflation, in the area of economy, which has affected citizens in being unable to pay rent as due, and for being unable to afford houses for themselves.
“It is to note that those living in Kubwa are now moving to Suleja, and those living in Mararaba are now living in One Man Village because of the increase in house rents, he said.
Also, a Real Estate Economist, Mr Benjamin Onigbinde, echoed the sentiment, stressing the need for deeper investment in construction technology and artisan skills development.
He cited the example of compressed earth bricks, which can reduce home acquisition costs by up to 35 per cent, as a viable alternative to conventional materials.
“Bridging the housing deficit of about 22 million has been a key programme of many successive governments towards achieving an improved standard of living and security. Evidence from recent development has suggested improved efforts of the present administration of President Bola Tinubu in improving the supply of housing stocks through the Renew Hope Housing Initiative.
“Notwithstanding, the potential of the administration to supply more housing is high if all stakeholders along the supply chain are fully engaged in the implementation of the policy. More investment is required in both building technologies and artisan skills to bring down the cost of construction.
“Employing new technology, compressed earth bricks have proved to reduce the cost of home acquisition by up to 35 per cent. Improved skills of artisans will increase productivity and supply in the sector, Onigbinde said.
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