Lagos, Access Bank team up to address low-income housing needs

…10% initial deposit, single digit interest mortgage on offer

Lagos State government and Access Bank, a frontline commercial bank in Nigeria, have teamed up to address low-income housing which is one the state’s teething social and economic challenges arising from its fast-paced urbanization.

This partnership is in line with the state’s housing provision strategy which embraces public private partnership (PPP). The state believes that PPP helps to accelerate the pace of housing development and provides a platform for innovation, efficiency and resource mobilization.

“Today, we are proud to witness the consummation of another milestone partnership aimed at addressing the housing deficit in the state. In collaboration with Access Bank, we are embarking on a transformative housing project that will deliver the first batch of 704 units of two-bedroom apartments at Odo-Nla in Ikorodu.

This initiative is designed specifically for low-income Lagosians, offering affordable mortgage terms which include a down payment of just 10 percent, a single-digit interest rate, and a repayment period of up to 20 years. This is not just about building houses; it is about creating homes, fostering communities, and laying the foundation for better lives,” Babajide Sanwo-Olu, the state governor, noted.

The governor noted further that the world is undergoing housing challenge, affirming that the socio-economic task of providing affordable housing for millions of low-income individuals is real and pressing. He cited projections by the United Nations and experts, which suggest that over three billion people may be affected by inadequate housing by 2030, a situation, he said, should be a source of deep concern for governments at all levels. “This is not just a statistic; it is a call to action,” he stressed.

The governor pointed out that shortages of land, lending, labour, and materials are exacerbating the global housing crisis, making it increasingly difficult for individuals and families to afford low-income homes. He added adding that addressing the challenge requires bold interventions, innovative solutions, and collaborative efforts.

“Here in Lagos State, the epicentre of Nigeria’s urbanization and home to a rapidly growing population, the demand for housing continues to outpace supply by significant margins. The resulting housing deficit poses a critical challenge, one that our administration is determined to address head-on.

Guided by our THEMES+ Agenda, we have implemented a range of initiatives to tackle this challenge. Over the past five years, we have delivered 21 housing estates across low, medium, and premium categories, providing homes to thousands of Lagosians. While these achievements are commendable, we recognize that much more needs to be done,” Sanwo-Olu said.

According to the governor, the economic multiplier effect of the Odo-Nla project cannot be overstated as it will stimulate massive engagement across the housing construction value chain, including artisans, suppliers, and building professionals. By doing so, it not only addresses housing needs but also creates jobs and drives economic growth.

To support private sector participation, he revealed that the state government has streamlined approval processes and introduced several incentives, including a 40 percent rebate on permits such as Environmental Impact Assessments (EIA), Traffic Impact Assessments (TIA), and physical planning permits. Additionally, tax incentives and regulatory flexibility further demonstrate our commitment to making Lagos an attractive destination for housing investments.

The governor reasoned that a project of this magnitude requires seamless coordination, adding that he is proud to note that the Lagos State government has initiated a multi-agency synergy to ensure its success. Representatives from eleven key Ministries, Departments, and Agencies (MDAs) have worked tirelessly to fine-tune every aspect of this project.

These MDAs are Ministries of Finance; Transportation; Justice; Economic Planning and Budget (MEPB); Physical Planning and Urban Development; Environment and Water Resources; Lands Bureau; Lagos State Development and Property Corporation (LSDPC); Lagos State Mortgage Board; and New Towns Development Authority (NTDA). This collaborative approach eliminates potential bottlenecks and ensures timely delivery of the project.

“Our commitment to addressing the housing deficit is unwavering. Beyond the Odo-Nla project, we have other ongoing housing developments at Sangotedo Phase 2, Ita Marun in Epe, Ajara in Badagry, Ibeshe Phase 2 in Ikorodu, and Egan Igando Clusters 2 and 3. These projects collectively represent our determination to provide lasting solutions to the housing needs of Lagosians.

I wish to express my profound appreciation to the board and management of Access Bank for believing in the viability of this project and for their innovative financing model that makes it possible. Your partnership exemplifies the kind of collaborative effort needed to address complex challenges like affordable housing,” the governor said.

He was hopeful that, moving forward, the initiative will set a new benchmark for affordable housing in the state, adding that, in the next 24 months, they will return to Odo-Nla to cut the tape and hand over 704 units of two-bedroom apartments to deserving families. “This will be a moment of pride and fulfillment for all stakeholders involved,” he assured.