Nigeria’s Housing Crisis Worsens As Deficit Nears 28 Million Units

The Lagos State Government has raised concerns over Nigeria’s worsening housing crisis, warning that the country’s effective housing deficit could rise to 28 million units within the next few years if urgent interventions are not sustained.

The Commissioner for Housing, Hon. Moruf Akinderu-Fatai, sounded the alarm on Tuesday during the Ministerial Press Briefing commemorating the third year of Governor Babajide Sanwo-Olu’s second term in office.

Akinderu-Fatai said recent findings by the National Housing Data Technical Committee inaugurated by the Federal Ministry of Housing and Urban Development showed that Nigeria’s official housing deficit currently stands at 14.925 million units.

According to him, the situation is even more troubling because an additional 15.2 million homes across the country have been classified as structurally defective or substandard, pushing the effective shortage close to 28 million units.

The commissioner noted that the growing housing gap poses a serious challenge to urban development, economic growth and social stability, especially in rapidly expanding cities like Lagos.

He explained that Lagos, with an estimated population of over 17.8 million people and an annual growth rate of nearly 3.8 per cent, remains the epicentre of housing demand in Nigeria.

Akinderu-Fatai said the pressure created by rapid urbanisation, rural-urban migration and limited landmass had worsened the state’s housing shortage, which independent reports estimate at more than 3.3 million units.

He stressed that the most severe shortages were being experienced within the low and middle-income housing segments, where affordability remains a major challenge for many residents.

The commissioner, however, said both the Federal Government and Lagos State Government had intensified efforts to address the crisis through policy reforms, housing projects and strategic partnerships with the private sector.

He highlighted the Federal Government’s housing intervention programmes, including the Ministry of Finance Incorporated Real Estate Investment Fund, MREIF, which provides mortgage financing at a single-digit interest rate of 9.75 per cent with repayment periods of up to 20 years.

Akinderu-Fatai also disclosed that the Lagos State Government had delivered 10,623 housing units in the last seven years through direct funding and Public-Private Partnerships, while ongoing projects are expected to raise the figure to over 14,000 units before the end of 2026.

He said the state government remained committed to reducing barriers to home ownership and increasing the supply of affordable homes across Lagos.

The commissioner added that the administration’s housing initiatives were not only addressing accommodation challenges but also creating jobs and stimulating economic activities in the construction and real estate sectors.