Developers to FG: N25m housing loan for civil servants unrealistic

…Seek 30% upward review

By Maduka Nweke

The federal government may have increased the housing loan ceiling for civil servants to N25 million, but for many workers and developers, the adjustment barely scratches the surface of Nigeria’s soaring property prices.

In a market where modest apartments now sell for well above N30 million, real estate stakeholders say the revised ceiling remains disconnected from reality and locks out civil servants from bridging the affordability gap.

Developers argue that the policy, though well-intentioned, risks becoming ineffective if it fails to reflect current scathing construction costs and market dynamics.

Their position is that the ceiling should be raised by at least 30 per cent to stand any chance of delivering meaningful access to housing.

Although the government’s move signals an effort to support workers, industry players say it does little to address the structural challenges facing homebuyers, especially civil servants who often lack the financial flexibility to top up loans with personal savings or meet strict collateral requirements.

“Since the Federal Government is no longer building quarters for civil servants, they should be able to provide them with loan facilities to enable them own their houses,” stakeholders insist.

That shift, from government-provided housing to self-financed ownership, has exposed a critical gap. Without sufficient loan access, many workers are left navigating a housing market that continues to outpace their earning capacity.

Stakeholders warn that offering N25 million in the current environment is akin to setting up beneficiaries for frustration rather than success. “Most selling apartments now go above N30 million and to give a civil servant who may not have the prerequisite to go for collateral mere N25 million is to drop him in the middle of the road,” they argue.

Behind the numbers lies a deeper issue of the rising cost of building materials, inflationary pressures and currency volatility have collectively pushed housing prices beyond the reach of average income earners.

For developers, the solution lies in recalibrating policy to reflect these realities. A 30 per cent increase in the loan ceiling, they say, would provide a more realistic entry point for civil servants seeking to own homes.

According to Mr. Haruna Kadiri, a Federal Civil servant, Governments both in the Federal, State or Local do no longer show conscience with regards to the condition of the civil servants. They care only for themselves and their relatives with little or no attention to the welfare of the staffers in their various ministries. “I don’t know how you will be working for a government, will he feel that what he is getting is not enough despite the fact that his take home is hundred times bigger than what he collects yet he will not increase your salary? I think it is pure wickedness.

“Recent happenings in Nigerian real estate include the Federal Government’s efforts to address the housing deficit through projects and increased loan ceilings for civil servants. While the Lagos State government is focusing on enforcement through building insurance and land reforms in the private sector, there are ongoing trends such as innovation in informal housing finance, the expansion of luxury apartment offerings, and challenges like rising construction material costs and building collapses,” he said.

Although the government is committed to housing delivery and urban planning reform, Mrs. Jecinta Ndubuoke, a property agent, believes that setting a December 2025 deadline for the launch of a National Housing Data Centre is not enough. She believes that action speaks louder than words. “I think that the government should be proactive in whatever actions that need attention. I believe that there are Federal Civil servants in every state of the federation. If the Federal Government should build staff quarters for all its staffers in the states, then the housing deficit will become a thing of the past.

“Housing loan ceilings for civil servants were increased to N25 million, though some developers deem this very unrealistic and cannot achieve the aim. In my own mind, if the government is serious with the increment, they should show signs of commitment and provide the enablers that will make it possible.

The government should build housing estates, subsidize it for civil servants and increase infrastructure development. There are ongoing efforts to expand major infrastructure projects like the Abuja-Kaduna-Kano road, the Lagos-Calabar coastal road, the Lagos-Benin road, the Onitsha- Enugu road to mention. These are some open wounds the federal government will first get wounded,” she said.

Lagos state government is stepping up enforcement of its housing and land policies by making building insurance mandatory and expanding digital land reforms. The government is also revoking allocations for unoccupied apartments, as well as properties linked to fraudsters or drug users. Additionally, the state is advancing urban regeneration projects, including initiatives like the Alimosho Model City Plan.

In the opinion of Mr. Chinedu Akabueze, a property developer in Amuwo Odofin, Lagos, all these are already belated and the aim is punctured by a series of demolitions carried out by the state government. “When you are fighting to increase housing for the citizens, meanwhile you are demolishing the one they are occupying, then you are not serious.

“There is a surge in demand for luxury apartments in major cities, and the market is still attractive to investors despite a drop in investment volumes from the 2021 peak. Industry stakeholders are pushing for innovation in informal housing finance, and some developers are introducing rent-to-own schemes to improve affordability all in a way to cushion the effect of hardship in town. The sector faces challenges including rising cement and steel rod prices, professional misconduct by agents, and a high rate of building collapses.

“The Lagos State Real Estate Regulatory Authority (LASRERA) has launched a platform to tackle fraud and partner with firms to connect real estate professionals. If these are leveraged on, the situation will be better,” he said.