Deapite frantic efforts by government to roll out housing schemes across the country, middle and low income earners are still struggling to access affordable homes amidst harsh economic realities that is still persevering in 2026,
Checks by Daily Trust show that high cost of building materials, high interest rates, access to mortgage among others have
Although the federal government has up with the Renewed Hope Housing scheme initiative aimed at providing affordable housing to Nigerians, the initiative is yet to start yieding fruitd
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This is worsened by a huge housing deficit estimated at about 20 million
When President Tinubu assumed office in May 2023, he admitted that access to decent housing is not just a matter of shelter but a cornerstone of national development, adding that it promotes social stability, improves health outcomes, reduces poverty, and drives inclusive economic growth.
However, the federal government is yet to match words with actions especially in terms of funding
This is even evident as the Ministry of Housing and Urban Development only budgeted N105 billion which is just 2% of the N5 trillion annual requirement
Construction experts say the costs is largely driven by inflation despite the numbers indicating a reduction, noting that the dream of owning a home is constantly slipping out of reach of many underserved average class Nigerians, as the prices of materials and labor continue to rise.
Experts react
Speaking on the issue, the Executive Director of the Housing Development Advocacy Network (HDAN), Barr. Festus Adebayo noted that despite years of conferences, policies, and promises, housing delivery continues to lag behind demand, while costs keep rising.
He further stated that there is systemic failure in addressing the issue.
"Today, the challenge is no longer just about housing shortages; it is about a systemic failure driven by high construction costs, limited access to affordable land, and prohibitive interest rates.
"He said one of the most visible obstacles to affordable housing delivery is the spiralling cost of building materials. Cement, steel, roofing sheets, tiles, fittings, energy, and transportation costs have risen sharply across the continent, driven by inflation, currency depreciation, high fuel prices, and heavy dependence on imports.
"For developers focused on low-income housing, these increases are devastating. Affordable housing works on thin margins. When material costs rise suddenly, projects are delayed, scaled down, or abandoned entirely. In many cases, developers are forced to pass the costs on to buyers, instantly pushing homes beyond the reach of low-income earners.
"For ordinary citizens, this reality means one thing: formal housing becomes unaffordable, and informal settlements become the default option,%
On the issue of land, he said "Land is often described as abundant in Africa, yet affordable housing developers struggle to access it. The problem is not land alone, but serviced and legally secure land.
"By the time land is properly titled and serviced, its cost has multiplied several times over. These costs inevitably end up embedded in house prices or rents, making "affordable" housing unattainable for the very people it is meant to serve,"
Adebayo while lamenting high interest rates stated that Housing finance remains one of the weakest links in Africa's housing ecosystem.
"Mortgage interest rates in many countries are simply too high for low-income earners, and repayment tenors are often too short. For most workers in the informal or low-income formal sector, accessing a mortgage is either impossible or financially reckless. Developers are also affected, as high borrowing costs increase project financing expenses, which again translate into higher house prices.
"Without affordable, long-term, local-currency housing finance, homeownership remains a privilege rather than a right.," he said
Also speaking, an estate surveyor, ESV Olufemi Oyedele stated that affordable housing has remain elusive due to adequate committment by government
He also added that indiscriminate demolition is also scaring developers from building properties
"The latest challenge of property development in Nigeria is the indiscriminate building demolition by governments without notice to the property owners and adequate compensation.
"This new development has created fear in the minds of prospective property investors in Nigeria. Prospective property investors see demolition of properties without adequate engagement with the owners as lack of rule of laws,"
What Governments must do in 2026
Barr. Adebayo on solutions stated that "If government is serious about closing housing deficit, governments must move beyond rhetoric in 2026 and implement deliberate, coordinated interventions.
"Government must reduce the cost of building materials and must support local production of building materials and encourage alternative, cost-effective construction technologies that meet safety standards.
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"Targeted tax waivers or duty reductions on inputs used strictly for affordable housing projects can also provide immediate relief. Bulk procurement schemes for verified developers and cooperatives can further lower costs. "There should also be delivery of serviced, affordable land. Public land banking, proper planning, and the provision of trunk infrastructure are essential. Governments should make serviced plots available specifically for affordable housing, with clear affordability conditions attached. Digitising land registries and simplifying approval processes will reduce delays, corruption, and hidden costs that inflate housing prices.
"Subsequebtly, affordable housing cannot be delivered with expensive money. Governments must support interest-rate buy-downs, credit guarantees, and housing finance liquidity mechanisms that reduce risk for lenders and cost for borrowers. Rent-to-own schemes, cooperative housing finance, and incremental building loans should be expanded, especially for low-income and informal-sector workers, he added.
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