Housing Finance in Nigeria


This profile is also available in French here.

To download a pdf version of the full 2023 Nigeria country profile, click here.

Nigeria, comprised of 36 states and a Federal Capital Territory, operates under a democratic federal system with an elected president, a bicameral legislature, and an independent judiciary. The recent tightly contested House, Senate, and Presidential elections on February 25, 2023, concluded with President-elect Bola Ahmed Tinubu assigning portfolios and inaugurating the new cabinet in August 2023. Notably, stakeholders in Nigeria’s housing sector praised the appointment of Architect Ahmed Musa Dangiwa as the Minister of Housing and Urban Development, outlining key areas for intervention to enhance the sector.

Despite political developments, the National Population and Housing Census dates are pending announcement. With an estimated population of 224.6 million (the 6th largest globally) and a growth rate of 2.41%, Nigeria is projected to reach 262.6 million by 2030. The Multidimensional Poverty Index indicates that 51.4% of Nigerians are multidimensionally poor, and the Gini coefficient for 2022 stands at 35.1%, reflecting disparities. Urbanization, unemployment, and poverty create additional challenges for the housing sector.

Economically, Nigeria faces an estimated growth rate of 3.2% in 2023, but the annual inflation rate soared to 24.08% in July 2023, the highest since September 2005. The Central Bank of Nigeria has responded by raising its benchmark interest rate to 18.75% to curb inflationary pressures. Global commodity shocks, challenges in benefiting from oil production, and a depreciating currency further threaten economic stability. The exchange rate of the Nigerian naira against the US dollar averaged ₦760.363 to US$1 in July 2023, and ongoing forex scarcity and liquidity constraints could impact economic activity.

A significant concern is the high percentage (58.8%) of the urban population living in slums, indicating a substantial demand for affordable housing with basic infrastructure. Challenges in the housing sector include the high cost of building materials, exchange rate fluctuations, and land acquisition issues. The 17th edition of the Africa International Housing Show in July 2023 emphasized the necessity for reliable data to support policymaking and investment decisions in Nigeria’s housing sector. The Abuja Declaration showcased the commitment of housing practitioners and stakeholders towards ensuring access to green and affordable housing.

Find out more information on the housing finance sector of Nigeria, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2023 edition, which has up-to-date profiles for 55 African countries.

Download yearbook
Neighbouring Countries Benin Cameroon Chad Niger
View more
View more
View more
View more
View more