By Maduka Nweke
Amid growing economic hardship across Nigeria, the Lagos state government has said it is intensifying efforts to ease the burden through its targeted housing programmes.
One of such interventions, it noted, is the planned delivery of 704 housing units at Odo-Nla in Ikorodu and similar projects across the state, designed to ease the pressure of accommodation challenges, particularly for low-income earners.
During the recent presentation of the memorandum of understanding (MoU) between the Lagos State Government and Access Bank Housing Scheme in Ikorodu, Governor Babajide Sanwo-Olu acknowledged the pressing global challenge of providing affordable housing for millions of low-income individuals. He emphasized the urgency of addressing this socio-economic issue, stating, “The global housing challenge, especially the socio-economic task of providing affordable housing for millions of low-income individuals, is real and pressing.”
Highlighting the partnership with Access Bank PLC, the governor revealed plans to deliver the first batch of 704 two-bedroom apartments at Odo-Nla in Ikorodu. “This initiative is designed specifically for low-income Lagosians, offering affordable mortgage terms: a down payment of just 10 percent, a single-digit interest rate, and a repayment period of up to 20 years. This is not just about building houses; it is about creating homes, fostering communities, and laying the foundation for better lives,” he explained.
Sanwo-Olu underscored the broader economic benefits of the project, saying, “The economic multiplier effect of this project cannot be overstated. It will stimulate massive engagement across the housing construction value chain, including artisans, suppliers, and building professionals. By doing so, it not only addresses housing needs but also creates jobs and drives economic growth.”
To encourage private sector involvement, the governor outlined various incentives and streamlined processes: “We have streamlined approval processes and introduced several incentives, including a 40 percent rebate on permits such as Environmental Impact Assessments (EIA), Traffic Impact Assessments (TIA), and physical planning permits. Additionally, tax incentives and regulatory flexibility further demonstrate our commitment to making Lagos an attractive destination for housing investments.”
Sanwo-Olu also praised the coordinated effort behind the project, noting, “A project of this magnitude requires seamless coordination, and I am proud to note that the Lagos State Government has initiated a multi-agency synergy to ensure its success. Representatives from eleven key Ministries, Departments, and Agencies (MDAs) have worked tirelessly to fine-tune every aspect of this project.” He listed the involved agencies, including Finance, Transportation, Justice, Economic Planning and Budget, Physical Planning and Urban Development, Environment and Water Resources, Lands Bureau, Lagos State Development and Property Corporation (LSDPC), Lagos State Mortgage Board, and the New Towns Development Authority (NTDA). “This collaborative approach eliminates potential bottlenecks and ensures timely delivery of the project,” he added.
The governor reaffirmed the state’s unwavering commitment to tackling the housing deficit, citing other ongoing projects at Sangotedo Phase 2, Ita Marun in Epe, Ajara in Badagry, Ibeshe Phase 2 in Ikorodu, and Egan Igando Clusters 2 and 3. “These projects collectively represent our determination to provide lasting solutions to the housing needs of Lagosians,” he said. He also expressed gratitude to Access Bank PLC, praising their innovative financing model: “I wish to express my profound appreciation to the Board and management of Access Bank PLC for believing in the viability of this project and for their innovative financing model that makes it possible. Your partnership exemplifies the kind of collaborative effort needed to address complex challenges like affordable housing.”
Earlier, the Commissioner for Housing, Moruf Akinderu-Fatai, highlighted the government’s role in mobilizing relevant ministries and agencies within the built environment sector. He praised the Access Bank team’s cooperation throughout the planning process, stating, “During this initial planning period, we identified and considered various land sites across the IBILE division, of which Odo-Nla in Ikorodu was picked. The nature of the soil and existing scheme infrastructure were principal factors for this decision.”
Balancing urban growth and housing pressure
The Commissioner for Housing, Mr. Moruf Akinderu-Fatai has identified rapid urbanisation as one of its most pressing challenges. He said the state was tackling the matter headlong but quickly added that the trend is not unique to Nigeria as it remains a significant global phenomenon, particularly in developing countries where rural-to-urban migration continues to surge.
This, he noted, places immense pressure on housing demand, affordability and urban infrastructure development.
The Commissioner praised the current administration under Governor Babajide Sanwo-Olu for prioritising housing as a cornerstone of economic development. “Housing construction generates multifaceted economic benefits, and the administration recognises its pivotal role in city growth.”
He further explained that the government’s THEMES+ strategic policy offers sustainable solutions by focusing on increasing housing stock for low-income residents and shifting the narrative positively. “The Lagos State Government has implemented comprehensive initiatives to tackle affordable housing, including budgetary allocations for low-income housing construction, fostering a conducive environment for real estate developers through public-private partnerships (PPPs), and streamlining approval processes.”
“Additionally, tax incentives, innovative financing models for both developers and buyers, and supportive policies have strengthened efforts to expand affordable housing for Lagos’ low- and middle-income segments,” Akinderu-Fatai added. “These strategies have consistently proven effective—boosting the stock of decent homes, improving quality of life, generating employment, and revitalizing the state’s economy over time.”
During a recent Ministerial briefing on housing development, the Commissioner for Housing, Mr. Moruf Akinderu-Fatai, highlighted a United Nations projection that by 2050, 68 percent of the world’s population will reside in urban areas, further intensifying the need for adequate housing.
He stated, “Cities in Asia, Africa, and Latin America are experiencing rapid growth, which fuels the demand for housing. But urban expansion often outpaces infrastructure development, leading to slums and informal settlements.”
Akinderu-Fatai highlighted the critical housing challenges facing Nigeria and Africa at large. “Nigeria faces a massive housing deficit estimated at over 22 million units. This shortage results from rapid population growth, rural-to-urban migration, and inadequate urban infrastructure. Compounding this are security challenges in many rural areas, which push more people towards urban centers. Consequently, Nigeria has become the most urbanized country in Africa, with Lagos alone home to over 23 million residents, making it one of the largest cities globally. This rapid urban influx drives demand for housing but also exacerbates the shortage, as formal housing supply struggles to keep pace.”
He added, “While the luxury and commercial real estate sectors have seen growth, especially in Lagos and Abuja, the affordable housing market continues to face a significant gap that demands massive investment. Challenges such as high construction costs and limited access to financing hamper progress in this area.”
One of the major barriers in Nigeria’s housing sector, according to the Commissioner, is the affordability of mortgage financing. “Mortgage interest rates can reach 20 to 25 percent, effectively putting homeownership out of reach for low-income earners. Both government and private sectors are actively exploring improved financing options. The global challenge of delivering affordable housing is real and felt deeply here in Lagos State. Our evolving strategies reflect the urgency to address the needs of an ever-growing urban population.”
He emphasised the impact of global economic instability, noting, “Rising construction costs, material shortages, and soaring rental prices are severely affecting low- and middle-income residents, many of whom face homelessness. The daily influx of low-income individuals into Lagos increases the demand for affordable accommodation. Lagos, with its limited land area of just 3,577 square kilometers—one-third of which is water—and an annual population growth rate of 3.34 percent, presents significant challenges in providing decent housing for all.”