Housing crisis: Tinubu moves to bridge 15m deficit as Abbas seeks reforms

From Ndubuisi Orji and Okwe Obi, Abuja

The Federal Government has stepped up efforts to tackle Nigeria’s estimated 15 million housing deficit with the unveiling of a 5,000-unit residential estate in Lagos and plans to extend housing development to all 774 local government areas, as the Speaker of the House of Representatives, Tajudeen Abbas, warned that systemic failures, weak regulation and fraudulent property transactions were frustrating investment and making homeownership increasingly difficult for Nigerians.

President Bola Tinubu, according to the Minister of Housing and Urban Development, Muttaqha Rabe Darma, is concerned about the country’s growing housing shortage and has directed attention towards expanding affordable accommodation through partnerships with private developers, mortgage institutions and other investors.

The minister disclosed this at the groundbreaking ceremony of the 5,000-unit Harmony Renewed Hope Housing Estate in Ibeju-Lekki, Lagos State, where he announced that the Federal Government was considering the construction of 100 housing units in each of the country’s 774 local government areas, alongside a proposed 100,000-unit housing scheme.

The development came as Abbas, speaking at a stakeholders’ conference on the proposed National Real Estate Regulatory Authority in Abuja on Monday, identified difficulties in verifying land ownership, bureaucratic delays, overlapping institutional responsibilities and inadequate protection for property buyers as major obstacles to investment in the housing sector.

The Speaker said Nigeria’s housing challenge went beyond the shortage of residential buildings, arguing that the absence of trust, transparency and reliable property information had created an environment in which genuine investors were discouraged while fraudulent operators exploited unsuspecting Nigerians.

“Nigeria does not lack property. Nigeria lacks enough trust in property,” Abbas declared in his keynote address titled “Building a Trusted and Investable Nigerian Real Estate Market.” He said the proposed regulatory authority was intended to address institutional weaknesses, protect investors and homebuyers, and establish a more transparent and accountable real estate market.

“A buyer cannot always confirm who owns the land. A developer may spend years seeking approvals from offices that do not share information. A bank may reject a sound project because the title is difficult to verify. A family may commit its savings to a house that is sold twice, never completed, or never legally existed.

“These failures increase housing costs, discourage investment, and reward fraud. The purpose of regulation must therefore be clear. We are not here to create another agency. We are here to protect property, protect capital, and protect citizens. We are here to build a trusted market that attracts investment and delivers more affordable homes.”

Abbas consequently advocated a centralised and digitised administrative system that would simplify property transactions, facilitate verification of land titles and project approvals, reduce bureaucratic bottlenecks and strengthen investor confidence.

He said the proposed National Real Estate Regulatory Authority should maintain a verifiable register of developers, estate agents and property projects, enabling prospective buyers to establish the identities, licensing status, project approvals and compliance records of operators before making payments.

The conference, with the theme “One Vision, One Ecosystem, One National Housing and Real Estate Plan,” was organised by the Office of the Speaker in collaboration with the House Committee on Housing and Habitat. At the Lagos groundbreaking ceremony, Darma said the government’s proposed nationwide housing programme was designed to increase the supply of residential accommodation and provide more Nigerians with opportunities to own homes.

He explained that feasibility studies and costing assessments were underway to determine the financial requirements of the proposed projects, taking into account differences in construction costs, land availability and housing needs across the states.

The minister said the 5,000-unit Harmony Renewed Hope Housing Estate, being developed in partnership with Harmony Gardens and Estate Development Limited, would provide eligible Nigerians with access to mortgage financing, thereby reducing the burden of outright payments that had placed residential properties beyond the reach of many households.

He urged prospective homeowners, particularly those resident in Lagos, to explore the opportunities offered by the development, describing collaboration between government, private developers and mortgage institutions as an important component of efforts to address the country’s accommodation shortage.

Darma also drew attention to the low level of mortgage financing in Nigeria, noting that access to housing credit remained limited despite the country’s large population.

Speaking at the Abuja stakeholders’ conference, the minister said the Federal Government was intensifying efforts to address the structural and institutional challenges confronting the housing sector.

“Our population, as of today, is estimated to be about 240 million. But, as speakers after speakers mentioned, mortgage penetration is very low. It is less than 10 per cent, as against 38 per cent in Malaysia and 40 per cent in South Korea,” he said.

He maintained that improving access to mortgage financing, strengthening institutional coordination and expanding private sector participation would be necessary to reduce the housing deficit and make homeownership more accessible.

Similarly, Chairman of the House Committee on Housing and Habitat, Abdulmumini Jibrin, called for stronger legislation and a comprehensive regulatory framework to address the challenges confronting the real estate sector.

Jibrin said an assessment undertaken by his committee revealed that Nigeria had yet to harness even a fraction of the opportunities available in the housing industry because of regulatory gaps, overlapping responsibilities among government institutions, inadequate consumer protection and the absence of a coordinated national framework.

According to him, the lack of effective coordination among agencies responsible for different aspects of housing development has created duplication of functions and complicated efforts to implement a coherent national housing policy.

“There are enormous challenges. We have a wonderful Minister of Housing. But as the Minister of Housing of the Federal Republic of Nigeria, he does not have jurisdiction over all the agencies and institutions that have to do with housing. There is a link; there is a gap. So, there is duplication of functions,” he said.

The lawmaker, however, allayed fears that the proposed regulatory authority would encroach on the constitutional responsibilities of state governments or take over the functions of existing professional bodies.

“The bill to create the National Housing Regulatory Authority is not going to take over the powers of any state government. We are not going to compete. We are only going to cooperate.

“And for professional bodies, nobody is taking away your responsibility. It will be protected. For government agencies, it will strengthen you and ensure that every government agency is empowered to perform its statutory role according to its Act,” Jibrin stated.

Meanwhile, Managing Director and Chief Executive Officer of Harmony Gardens and Estate Development Limited, Abdullahi Saheed Mosadoluwa, said the 5,000-unit Lagos development was designed to provide sustainable residential communities where Nigerians could acquire homes through structured mortgage financing rather than depend entirely on outright payments.

Mosadoluwa said homeownership should not remain the exclusive preserve of individuals capable of paying the full cost of residential properties at once, stressing that affordable payment arrangements would enable more eligible Nigerians to participate in the housing market.

He encouraged prospective homeowners to make enquiries about the available housing options, mortgage requirements and payment arrangements, particularly appealing to Nigerians in the diaspora who intended to return home, retire in Lagos or secure permanent accommodation for their families.

The Harmony Gardens boss reaffirmed the company’s commitment to delivering the 5,000 housing units within the agreed 36-month period, assuring that the estate would incorporate essential infrastructure, environmental considerations and sustainable community planning.

Also speaking at the ceremony, Damola Akinyelure of Metroscape commended Mosadoluwa for undertaking the project under the Federal Government’s Renewed Hope initiative.

Akinyelure recalled the developer’s contributions to the delivery of 4,000 housing units in Karsana, Abuja, saying the involvement of indigenous investors in large-scale residential developments demonstrated the opportunities available through public-private partnerships.

He described Mosadoluwa, popularly known as the Lagos Landlord, as a significant contributor to the real estate industry and called for greater recognition of indigenous developers participating in efforts to expand housing supply.

Akinyelure maintained that stronger collaboration among government institutions, mortgage providers and private developers would help increase the availability of residential accommodation and create more opportunities for Nigerians to own homes.