Nigeria faces a significant housing deficit exceeding 28 million units, requiring an annual investment of $6.25 billion to address the problem effectively. This translates to the need for 500,000 housing units annually for the next decade, at an average cost of N10 million per unit. The sheer scale of this challenge necessitates a robust and collaborative approach involving both the government and the private sector. Historical housing policies and strategies have been hampered by inconsistent implementation, a lack of political will, and poor coordination. The current administration, under President Bola Ahmed Tinubu, aims to break this cycle of inaction and deliver tangible improvements in the housing sector by prioritizing public-private partnerships (PPPs). This strategy acknowledges the crucial role of private sector investment and innovation in achieving the ambitious targets set for housing provision.
The existing housing stock in Nigeria also presents significant challenges. Over 70% of the estimated 43 million housing units fail to meet basic standards of habitability, safety, sanitation, accessibility, and infrastructure. This widespread inadequacy further exacerbates the housing crisis, highlighting the need for not only new construction but also substantial improvements to existing housing. Access to basic amenities such as piped water, sewage systems, and electricity remains alarmingly low, with only a small percentage of households connected to these essential services. This underscores the urgent need for integrated urban development that addresses these infrastructural gaps alongside housing construction. The government’s Renewed Hope Housing Programme and the National Urban Renewal and Slum Upgrade Programme are designed to tackle these complex challenges, with PPPs playing a central role in their implementation.
The government recognizes the importance of PPPs as a crucial mechanism to achieve large-scale affordable housing and urban development. These partnerships are seen as a key driver for attracting private sector investment and expertise, enabling the government to leverage the capabilities of developers and other industry stakeholders. By fostering collaboration, the government aims to conceive and implement impactful housing interventions nationwide. A key example of this strategy is the ongoing collaboration with a consortium of developers to deliver 100,000 housing units under a PPP framework. This project targets seven key locations across the country – the Federal Capital Territory, Lagos, Kano, Maiduguri, Enugu, Port Harcourt, and Nasarawa – reflecting a focus on areas with high housing demand.
Construction has already commenced under this initiative, with over 6,600 units currently in progress in the FCT, Lagos, and Kano. Further bolstering the government’s commitment to PPPs is a landmark partnership with Shelter Afrique Development Bank (ShafDB) to deliver an initial 5,000 housing units, with plans for nationwide expansion. This agreement marks a significant milestone as it represents the first direct collaboration between the Federal Government and ShafDB to access developer finance specifically for affordable housing. Beyond financial support, ShafDB will also provide crucial technical advisory services, including a comprehensive housing market assessment and the development of effective PPP transaction models for both affordable housing and urban renewal projects. This multifaceted approach is designed to ensure the long-term sustainability and success of housing initiatives.
In addition to these large-scale projects, the government is also exploring specialized housing initiatives, including the development of ‘Renewed Hope Medic Cities’ aimed at providing housing for healthcare workers. This reflects a broader strategy of addressing specific housing needs within different sectors of the population. The government is also engaging in discussions to revitalize the Centenary City project, further demonstrating its commitment to exploring various avenues for expanding housing options. The government has actively encouraged greater private sector participation in addressing the housing deficit, emphasizing the importance of collaboration and offering assurances of support to potential partners who can bring valuable expertise and resources to the table.
The Senate Committee on Land, Housing, and Urban Development has expressed strong support for the government’s focus on PPPs. Recognizing the urgency of the housing crisis, the committee emphasizes the catalytic role of housing in economic growth and the detrimental impact of the current deficit on families and communities. By leveraging PPPs, the Senate aims to integrate private sector innovation with government policies and financial support, creating a synergistic approach to housing development. The committee has pledged to enact legislation that promotes transparency, streamlines bureaucratic processes, and creates an enabling environment for private investment in the housing sector, further solidifying the commitment to collaborative solutions for Nigeria’s housing challenges. This bipartisan support for PPPs signals a strong political will to address the housing crisis, setting the stage for significant progress in the sector.
