Housing Affordability Crisis in Nigeria: HDAN Calls for Urgent Action

The housing affordability crisis in Nigeria has reached alarming levels, particularly in Lagos and Abuja, where property prices have soared beyond the reach of many potential homebuyers.

The Housing Development Advocacy Network (HDAN) has been actively advocating for government intervention to address this growing issue, which has made homeownership a distant dream for many Nigerians.

Over the past few years, the housing market in Nigeria has become increasingly unforgiving. In Lagos and Abuja, two of the country’s most expensive cities, the cost of housing has jumped dramatically. A one-bedroom apartment can now cost upwards of ₦25 million, a price unattainable for the majority of Nigerians.

Even with the recent increase in the minimum wage to ₦70,000, the United Nations guideline that individuals should not spend more than 30% of their income on housing is virtually impossible to meet. For someone earning ₦100,000 per month, this would translate to ₦30,000 for housing—a figure that is far below the actual costs.

“These figures have essentially erased the hope of the average Nigerian,” said Festus Adebayo, Executive Director of HDAN. “The dream of owning a home has become a nightmare for many, as they are forced to grapple with a market that is simply out of their reach.”

Several factors have also contributed to the housing affordability crisis in Nigeria, including inflation, the high cost of building materials, poor exchange rates, and high interest rates. Inflation in Nigeria has been persistently high, with the rate decreasing slightly to 33.40% in July 2024 from 34.19% in June 2024. This has had a cascading effect on the cost of living, with housing being one of the most affected sectors.

“The cost of building materials has surged, making it increasingly expensive to construct new homes,” explained Adebayo. “Coupled with a poor exchange rate and high interest rates, the situation has become untenable for both developers and potential homeowners.”

The economic pressures have driven up the cost of existing homes and made it difficult for new projects to come to fruition, further exacerbating the shortage of affordable housing. The result is a market where demand far outstrips supply, driving prices even higher.

One of the key solutions to the housing crisis, according to HDAN, is the introduction of housing subsidies. However, there appears to be no immediate plan from the government to implement such measures. If the current trends continue, HDAN warns that up to 70% of workers’ income could soon be spent solely on food, leaving little to cover other essential expenses such as rent and children’s school fees.

“The absence of housing subsidies is a glaring gap in the government’s approach to this crisis,” said Adebayo. “Without intervention, the situation will only worsen, putting even more strain on Nigerian families.”

HDAN has called on President Bola Tinubu to intervene urgently in the area of social housing. While the government has announced plans for renewed hope housing – cities and estates projects, HDAN warns that these efforts may not adequately address the needs of those who are most affected by the crisis.

The organization commended the efforts of Arc. Ahmed Dangiwa, Nigeria’s Minister of Housing and Urban Development, over the past year, noting that his understanding of the sector is crucial at this time. “President Tinubu has an opportunity to make a significant impact by addressing the housing affordability crisis head-on,” said Adebayo. “Around the world, provisions are made for the poor, and Nigeria should be no different. We need subsidies, tax rebates, and infrastructure support to make housing more affordable for all Nigerians.”

HDAN’s call has been echoed by other stakeholders and members of the advocacy group, who emphasize that the housing crisis should be a top priority for the government. They argue that addressing this issue is not just about providing shelter, but about ensuring the overall well-being and stability of the nation.

HDAN and its stakeholders believe that housing affordability crisis should be at the forefront of political discourse.

While issues like the economy, education, and healthcare dominate the headlines, the reality is that housing is the largest single expense for most households.

Rising costs have put the nation in a precarious situation, and without urgent action, the crisis could have far-reaching consequences.

“Politicians need to understand that housing is not just another issue—it is the issue,” said Adebayo. “The affordability crisis affects every aspect of life, from economic mobility to social stability. It’s time for our leaders to take bold steps to ensure that every Nigerian has access to affordable, quality housing.”

The housing affordability crisis in Nigeria is a complex issue with no easy solutions. However, with the right policies, including government intervention in the form of subsidies, tax rebates, and support for infrastructure development, there is hope that the situation can be improved.

HDAN’s call to action is a reminder that housing is a fundamental human need, and addressing the current crisis is essential for the future of Nigeria.