Dangiwa worries as 70% of Nigeria’s 43m housing stock substandard

Ahmed Dangiwa, Minister of Housing and Urban Development, says he is worried over Nigeria’s worsening housing crisis, noting that that more than 70% of the country’s estimated 43 million housing stock fall short of basic habitability standards.

Speaking at the Renewed Hope Housing Public-Private Partnership (PPP) Summit in Abuja, Dangiwa highlighted critical deficiencies, including inadequate access to piped water, sewage systems, and electricity.

He emphasized the urgent need for intervention, not just to address the housing deficit, but also to improve the quality of existing homes.

“Nigeria faces a dual challenge, a severe housing shortage and substandard housing conditions. Estimates of the housing deficit range from 17 to 28 million units, but a lack of reliable data has hindered effective planning.

“To bridge this gap, the Ministry is collaborating with the National Population Commission (NPC) to ensure the next national census provides accurate housing data.

“Additionally, the government has launched a National Housing Data Infrastructure initiative, bringing together key stakeholders such as the Federal Mortgage Bank of Nigeria (FMBN), the National Bureau of Statistics (NBS), and the Central Bank of Nigeria (CBN)” he said.

Dangiwa also noted that pending the completion of this initiative, the Ministry will be working with an estimated housing shortfall of over 20 million units.

“To close this gap, Nigeria needs to construct at least 500,000 housing units annually for the next decade—an effort that requires over N5 trillion ($6.25 billion) in annual investment”, he added

Recognizing the enormity of the challenge, the government is leveraging Public-Private Partnerships (PPPs) through the Renewed Hope Housing Programme and the National Urban Renewal and Slum Upgrade Programme to drive large-scale housing development.

The Ministry, he said, has already partnered with a consortium of developers to deliver 100,000 housing units, with the first phase focusing on seven Renewed Hope Cities in Abuja, Lagos, Kano, Maiduguri, Enugu, Port Harcourt, and Nasarawa.

Construction is currently underway on 6,612 units, including 3,112 in the Federal Capital Territory, 2,000 in Lagos, and 2,000 in Kano.

“These units, ranging from apartments to bungalows, primarily target upper-middle to high-income earners” he stated.

Beyond this, the government has signed an agreement with Shelter Afrique Development Bank (ShafDB) to build 5,000 housing units in the first phase, with plans for nationwide expansion.

The partnership according to him, aims to develop a Country Housing Deficit Reduction Strategy and create new PPP financing models to enhance housing affordability.

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“While constructing new homes is crucial, upgrading substandard housing is also a key priority as the statistics paint a stark picture: only 3.3% of Nigerian households have access to piped water, just 24% are connected to sewage systems, and only 51.7% have reliable electricity.

To tackle these challenges, the Ministry is scaling up collaborations with multilateral organizations like UN-Habitat and preparing to host Nigeria’s first National Urban Forum, which will focus on urban renewal and slum rehabilitation strategies”, he emphasized.

Despite these efforts, he lamented that regulatory bottlenecks are slowing down progress, particularly in the housing PPP sector.

Dangiwa pointed to the Infrastructure Concession Regulatory Commission (ICRC) as a major roadblock, arguing that its current PPP guidelines are more suited for large-scale infrastructure projects like roads and power plants rather than housing, which requires flexible financing models and shorter development cycles.

He called for separate, housing-specific PPP regulations to streamline project financing, ease land acquisition, and enhance affordability.

Reaffirming the government’s commitment, Dangiwa described the Renewed Hope Housing Programme as a bold and transformative initiative aimed at reshaping Nigeria’s housing landscape.

He noted that while 6,112 units are currently being developed through PPPs, only 3,500 are being built through direct government funding, underscoring the crucial role of private sector investment in bridging the housing gap.

“With the right partnerships, we can break the cycle of inaction and deliver tangible results. Housing is not just about shelter—it is infrastructure, a driver of economic growth, and a key component of social inclusion”, Dangiwa stated.

Olayemi Rotimi-Shodimu, the summit’s convener, echoed this sentiment, stressing that the responsibility of transforming Nigeria’s housing sector should not rest solely on the government.

“We cannot rely entirely on the government to drive this growth. Instead, the government should focus on creating an enabling environment while we, as stakeholders, work together to build a thriving industry,” he said.

He cited Kenya and Indonesia as examples of countries that have significantly addressed their housing challenges through strategic policies and partnerships.

According to him, Nigeria has the potential to achieve similar success if all stakeholders, government agencies, private developers, financial institutions, and policymakers, commit to a common goal. The two-day summit, held at the Shehu Musa Yar’Adua Centre in Abuja, is focused on repositioning Nigeria’s housing sector through PPP-driven solutions.

With the country’s housing deficit exceeding 20 million units, experts believe PPP frameworks will be instrumental in mobilizing private sector funding, leveraging government support, and ensuring efficient project execution.

As deliberations continue, industry players are optimistic that a collaborative approach will lead to meaningful reforms, bringing Nigeria closer to a vibrant and inclusive housing sector.