FG to Partner with State Governments, Developers on Affordable Housing Projects

 The Federal Government on July 31, 2025, unveiled plans to collaborate with state governments and private developers to address Nigeria’s housing deficit through a series of affordable housing projects, a move announced by Minister of Housing and Urban Development Musa Dangiwa during a sectoral briefing. 

With an estimated shortage of 20 million units, driven by a population growth rate of 2.6% annually and rapid urbanization, 70% of Lagos residents live in informal settlements, the initiative aims to deliver 500,000 units by 2027. The plan involves a ₦1.5 trillion public-private partnership (PPP) fund, with the federal government contributing 40%, states 30%, and developers 30%, focusing on low-income housing priced between ₦5 million and ₦10 million per unit.

The strategy includes pilot projects in Lagos, Kano, and Enugu, leveraging land from state governments and construction expertise from firms like Julius Berger and Elizade. However, challenges abound, with 60% of past housing schemes stalling due to funding delays and land disputes, as noted in a 2024 Ministry of Finance audit. 

Governor Babajide Sanwo-Olu of Lagos pledged 1,000 hectares, but critics question the affordability target, given construction costs have risen 35% due to inflation. The narrative of housing reform is promising, aiming to reduce poverty, 46% of Nigerians live below $2.15 daily, yet its feasibility depends on transparent partnerships and addressing systemic issues like corruption and infrastructure deficits.