Housing Finance in Nigeria

Overview

This profile is also available in French here.

To download a pdf version of the full 2021 Nigeria country profile, click here.

The continuing rapid growth of the Nigerian population, coupled with the economic downturn, has increased the housing backlog in the country. With 52% of the estimated population of 212 066 978 urbanised in 2021, 44.5% of Nigerians live below the poverty line. Rural-urban migration has been identified as a major force driving urbanisation growth, bringing with it opportunities and challenges for cities. The high level of poverty also affects the accessibility of the formal housing market as 42% of Nigerians live on less than a dollar a day. Urbanisation, unemployment, and poverty create additional pressures for the housing sector.

Recovering from COVID-19, the economy grew by 5.1% in Q2 2021. There has been a five-month consecutive decrease in inflation from 18.72% in March 2021 to 17.38% in July 2021. This inflationary trend has been attributed to constraints in income and consumer resistance. The impact of COVID-19 is not only felt domestically but has also affected diaspora remittances. Diaspora remittances account for 6.1% of Nigeria’s GDP and 83% of its national budget. Although the level of inflation trended downwards, food prices have gone up by approximately 122% in the past year.

With gross domestic product (GDP) growing at a higher rate than the population growth rate of 2.55% in 2021, the economic hardship being experienced in the country might abate in the following months. The unemployment rate in Nigeria was reported to be 32.5%in 2021 and forecast to be 33% in 2022.11 Income distribution among households is unequal, with a Gini coefficient of 35.1 points reported in 2020. A further seven million people fell into poverty in 2020.  The country remains the poverty capital of the world with 93.9 million people now below the poverty line. The naira is ₦526 per dollar in the parallel market and income inequality is on the increase. Following the expiration of the Economic Recovery Growth Plan, 2017-2020, the Federal Government of Nigeria (FGN) will be launching a Medium-Term National Development Plan (MTND), 2021–2025 in October.

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 2021 edition, which has up-to-date profiles for 55 African countries.

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