Nigeria faces a significant housing deficit, with millions of people lacking access to decent, affordable homes or any housing. This shortage is especially pressing in urban areas, where rapid population growth has outpaced the development of adequate housing, especially in one of the busiest commercial hubs in Africa i.e. Lagos State. Addressing this challenge requires innovative approaches that make housing more affordable for the average Nigerian.
More often, key concerns around housing in Nigeria include:

1. High Cost of Land Acquisition
   One of the main barriers to affordable housing is the high cost of land, particularly in high-brow areas within cities. Land prices in areas like Lagos, Abuja, and Port Harcourt have skyrocketed with states such as Oyo, Ogun, Anambra and Edo closely following, making the cost of acquisition difficult for developers to build homes that the majority of people can afford, leaving their target market to be the more affluent. To combat this, the government and private sector need to work together to make land more accessible. A viable solution could be the allocation of government-owned land for affordable housing projects, offered at discounted rates or via grants, to developers while also making an incentive for residential developments. This would lower the overall cost of housing and make it more attainable for low- and middle-income earners who are in the demographic of a developing country like Nigeria.
2. High Cost of Traditional Building Materials
   Traditional building materials like cement and bricks are increasingly expensive, contributing to the high cost of housing. A strategic approach to reducing construction costs is to adopt the use of alternative building materials and construction methods where feasible. Utilizing recyclable materials, prefabricated components, straw boards, cost-effective finishing materials, and drywall for non-load-bearing walls can significantly lower expenses while maintaining quality. This approach not only minimizes costs but also promotes sustainability in construction. These materials are not only cheaper and quicker to build with but also reduce both construction time and labour costs. This approach, common overseas, is now gaining traction in modern construction in Nigeria.
3. Lack of Financing for Property Acquisition
   Financing remains a major obstacle for many Nigerians looking to buy a home. Regular mortgage interest rates in Nigeria are often high, with few affordable options available. To address this, the government could establish more favourable mortgage schemes (National Housing Fund), possibly through public-private partnerships (developing rent-to-own schemes), offering lower interest rates and longer repayment periods. Additionally, microfinance institutions can play a role in providing smaller, more flexible loans for home purchases or renovations.
4. Lack of Affordable Housing Options for Young Professionals
   Affordable housing for young professionals involves developing well-designed, budget-friendly living spaces in strategic locations near universities and business hubs. These properties could be smaller with essentials and should offer amenities, such as security, access to affordable feeding and communal areas while being close to public transport. Generous rental rates and manageable payment plans are key, making it easier for young people to live comfortably while pursuing their education and early careers in a community exclusively for students and young professionals. This approach not only supports their growth but also enhances the value of the real estate market.

Also, a tip for young professionals out there looking for cheaper accommodation alternatives; look into shared houses/apartments.
Furthermore, as we know improving government planning and infrastructure development is essential for robust real estate development in a country, the lack of basic infrastructure like roads, electricity, and water in many areas makes housing projects more expensive. By investing in infrastructure, the government can make more areas suitable for residential development, thus lowering the cost of housing.
Finally, community-driven initiatives should be encouraged. Housing cooperatives, where people pool resources to build homes which can provide an affordable solution for many Nigerians. These cooperatives allow individuals to share costs and access financing collectively, making homeownership more achievable.

Solving Nigeria’s housing deficit requires a multifaced approach meaning the solution should not be looked at from one angle. By making land more accessible, using alternative building materials, offering better financing options, improving infrastructure, making affordable housing for young professionals and encouraging community initiatives, Nigeria can make significant strides in providing affordable housing for a larger demographic of its citizens.
For more insights and advisory, please reach out to the Meristem Real Estate Team via email at [email protected]