Nigeria's struggle to manage the rising cost of living has led to a concerning housing shortage across the country.

Major cities such as Abuja, Lagos, and Port Harcourt have seen a significant population surge, but the accessibility of affordable housing remains a pressing challenge.

Reacting to this development, the Chief Executive Officer of NISH Affordable Housing Ltd., Dr Saheed Adelakun, has called for a sustainable, affordable, and revolving housing finance mechanism to address Nigeria's alarming housing deficit.

Speaking at the 7th Nigeria Affordable Housing Finance and Innovation Summit and Expo (NAHFIS 2024) in Abuja, Adelakun emphasised the critical role of housing in national development.

He described housing as a fundamental human need alongside food.

"When people are not properly housed, anything can follow, like medical issues," he said.

Adelakun noted that effective housing policies would not only benefit citizens but also boost the economy.

"The economy itself can be capitalised by housing development. The government is trying, and the new administration's Renewed Hope Housing Policy is a step in the right direction. However, we cannot leave everything to the government," he added.

Govt efforts on housing deficit

Pulse Nigeria reports that Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, announced ongoing efforts to address housing affordability, launching a mortgage scheme offering near-single-digit interest rates on loans spanning up to 25 years.

According to Edun, this initiative aims to "spark a construction boom" by increasing access to affordable housing, a critical area for job creation and economic growth.

"In partnership with the private sector, we're delivering mortgages that will support Nigeria's housing and real estate sector," he affirmed.

Edun asserted that this comprehensive plan underscores Nigeria's renewed commitment to economic stability and inclusive growth, with "growth and jobs" as the ultimate objectives for a sustainable future.

Highlighting NAHFIS's role, Adelakun said the summit seeks solutions for low- and medium-income earners through innovative financing models.

He urged a shift from traditional mortgage systems to scalable, affordable housing solutions. Prof. Ibrahim Gambari, chairman of the occasion, stressed the need for collaboration among housing finance institutions.

He encouraged prospective homeowners to join cooperatives to pool resources and reduce costs. Echoing these sentiments, Glen Jordan, CEO of Empowa, criticised imported financial systems as unsuitable for Africa.

“It’s time to introduce mechanisms and technologies tailored for Nigerians,” he said.

Mark Weinrich, Secretary General of the International Union for Housing Finance, called for lower capital costs to make housing more affordable.

"If the cost of capital remains high, we will never overcome this challenge," he warned.

The summit underscored the urgency of disruptive innovations to bridge Nigeria's housing gap.