Nigeria's housing crisis is deepening, with the effective housing deficit threatening to reach 28 million units in the coming years if urgent measures are not sustained. This warning was issued by the Lagos State Government on Tuesday during a ministerial press briefing marking the third year of Governor Babajide Sanwo-Olu's second term.
Commissioner raises alarm
The Lagos State Commissioner for Housing, Moruf Akinderu-Fatai, stated that recent data from the National Housing Data Technical Committee, inaugurated by the Federal Ministry of Housing and Urban Development, indicates the official housing deficit currently stands at 14.925 million units. However, 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.
Akinderu-Fatai emphasized that this growing housing gap poses a serious challenge to urban development, economic growth, and social stability, particularly in rapidly expanding cities like Lagos.
Lagos at the epicenter
With an estimated population of 17.8 million and an annual growth rate of nearly 3.8 per cent, Lagos remains the epicenter of housing demand in Nigeria. The commissioner explained that rapid urbanization, rural-urban migration, and limited landmass have worsened the state's housing shortage, which independent reports estimate at more than 3.3 million units. The most severe shortages are experienced within the low and middle-income housing segments, where affordability remains a major challenge for many residents.
Government interventions
Both the Federal Government and Lagos State Government have intensified efforts to address the crisis through policy reforms, housing projects, and strategic partnerships with the private sector. Akinderu-Fatai highlighted the Federal Government's housing intervention programs, 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.
The commissioner also disclosed that the Lagos State Government has delivered 10,623 housing units in the last seven years through direct funding and Public-Private Partnerships. Ongoing projects are expected to raise the figure to over 14,000 units before the end of 2026.
Commitment to affordable housing
Akinderu-Fatai said the state government remains committed to reducing barriers to home ownership and increasing the supply of affordable homes across Lagos. He added that the administration's housing initiatives are not only addressing accommodation challenges but also creating jobs and stimulating economic activities in the construction and real estate sectors.
