Walk through many rapidly developing parts of Nigerian cities and one thing becomes obvious: buildings are everywhere. Yet, millions of Nigerians continue to struggle to secure decent and affordable accommodation.
This apparent contradiction points to one of the central problems confronting Nigeria’s housing market.
The country does not merely need more houses. It needs the right type of houses, in the right locations and at prices that ordinary Nigerians can afford.
A housing development targeted exclusively at high-income buyers cannot adequately address the needs of low- and middle-income households.
Affordable housing requires careful consideration of land costs, infrastructure, construction methods, financing, planning regulations and, most importantly, the income capacity of prospective occupants.
THE HIGH COST OF LAND
One of the biggest challenges is the cost of land in accessible urban locations.
When land becomes increasingly expensive, developers naturally seek to maximise the value of the site. This can encourage high-density, luxury or premium developments that may generate attractive returns but remain beyond the reach of the majority of households.
The challenge, therefore, is how to make land available for housing that ordinary workers can afford without compromising standards.
AFFORDABILITY GOES BEYOND RENT
Infrastructure is another major consideration. A house located far away from employment centres may appear affordable based on its rent or purchase price. However, if residents have to spend a significant portion of their income on transportation and lose several hours commuting each day, the property may not be genuinely affordable.
Affordability should therefore be measured not merely by the rent or purchase price, but by the overall cost of living associated with the location.
Access to roads, public transportation, electricity, water, drainage, schools, healthcare, markets and employment opportunities can significantly influence the real cost of housing.
THE ROLE OF GOVERNMENT
Government has an important role to play in creating an environment where affordable housing can thrive.
This includes improving infrastructure, streamlining planning and development approvals, providing appropriate incentives, making land more accessible and encouraging partnerships with private developers.
Public-private partnerships can also help mobilise the large amount of capital required to address Nigeria’s housing deficit. Government policies should encourage not only the construction of luxury developments but also housing schemes targeted at low- and middle-income earners.
HOUSING FINANCE IS CRITICAL
Access to affordable housing finance remains another major issue.
For many Nigerian workers, the challenge is not necessarily a lack of desire to own a home but the inability to raise the substantial capital required for land acquisition and construction.
Financial institutions therefore have an important role to play by developing innovative mortgage and housing-finance products that reflect the income realities of Nigerian households.
Longer repayment periods, appropriate interest structures and more accessible financing mechanisms could make homeownership more achievable for a larger segment of the population.
THE ROLE OF PROFESSIONALS
Professional Estate Surveyors and Valuers can contribute significantly to the development of affordable housing.
Through market research, feasibility studies, development appraisals and valuation analysis, they can help determine what types of housing are economically viable in different locations and what prospective occupants can realistically afford.
Their expertise can also assist developers and investors in identifying suitable locations, assessing development costs, analysing demand and structuring projects for long-term sustainability.
EXPLORING NEW CONSTRUCTION METHODS
Nigeria must also explore alternative construction technologies and locally available building materials where appropriate.
Innovative construction methods have the potential to reduce construction time and, in suitable circumstances, lower development costs. However, affordability should never come at the expense of safety, durability or acceptable building standards.
The goal should be to produce good-quality homes at prices that ordinary Nigerians can realistically afford.
A COLLECTIVE RESPONSIBILITY
Nigeria’s housing challenge is too large and complex to be solved by one sector alone.
Government, developers, financial institutions, Estate Surveyors and Valuers, architects, engineers, planners, construction companies and communities all have important roles to play.
The focus must also shift from simply measuring success by the number of houses constructed to considering who can afford them, where they are located and whether they meet the actual needs of the population.
Ultimately, the objective should be simple: A Nigerian worker should be able to live in a decent, safe and secure home without spending an unreasonable proportion of his or her income merely to keep a roof over their head.
That is the real meaning of a functioning housing market. Nigeria does not need only more houses. It needs more affordable homes—and that requires building for the people, not merely for the market.
ESV Oguntade Kayode Tony – M04199
