Stakeholders have asserted that private investors alone cannot bridge Nigeria’s housing gap without substantial government support and policy intervention.
Some experts made this assertion at the official launching of Shalom Park Estate Condominiums, held in Lagos recently.
The Chief Executive Officer of IFT Realty Limited and developer of Shalom Park Estate, Oluremi Oshikanlu, noted that most Nigerians are unable to afford their own homes due to the high cost of land, materials, and absence of government support, warning that private developers alone cannot fix the country’s 28 million housing deficit.
He said, “No private investor can really build low-cost houses. Anywhere in the world, it’s impossible.
No private investor can really build low-cost houses. It’s just too difficult.
“ You need government policy and funding support to complement the work we do. Nigeria’s cash-based economy is hurting the real estate sector.
“The Federal Government must step in by acquiring land, providing infrastructure, and enabling low-interest mortgages with long tenures and affordable rates through institutions like the Federal Mortgage Bank.
“Real estate cannot thrive on cash; we need mortgages, real ones. Give Nigerians a 30-year mortgage at a six per cent interest rate; remove the cost of land, security, and permit delays. Let the government give developers a design, tell us the expected cost, and give a fixed profit margin; then you can deliver a house for N20m with N5m profit.”
The Ifty Realty boss noted that the high cost of construction was passed on to buyers, making even modest homes unaffordable.
“Sand is N165,000 per truck now. Cement is N11,000 per bag. Before you start talking about profit, your cost has already gone beyond what many Nigerians can pay. I suggest that developers build basic housing shells while buyers complete finishing based on personal taste and budget.
“Finishing is taste; this door can be N250,000 or N50,000. Let people finish their homes to their own standard.”
Highlighting the role of diaspora remittances in real estate investment, Oshikanlu stated, “Our greatest export is not oil; it’s our people. The informal diaspora repatriation is the real foreign direct investment stabilising Nigeria. Every day, millions of dollars, pounds, and yen roll in to fund real estate purchases. Diaspora buyers are now revitalising ancestral communities like Ogbomosho, Epe, and Ijebu-Ode by building estates where locals had long abandoned investments.”
Oshikanlu, however, acknowledged that the surge in diaspora investments had widened the affordability gap for Nigerians living at home, who face inflation and lending rates above 30 per cent.
Meanwhile, speaking on multiple levies and regulatory hurdles developers face, he said, “We paid all the development levies, did the roads ourselves, installed the poles, and still handed it all over to the electricity distribution company. The government collected money but didn’t contribute; that’s why costs go up.”
Addressing criticisms that developers inflate prices, Oshikanlu argued that inflation and exchange rate volatility were the real culprits.
He added, “When I sold houses at N21m, my cost was N15m, but by the time I was done, the cost was N60m. What do you expect me to do? The government can decide to build 10,000 houses per state. They have the power. The governor owns the land. It just requires political will.”
In a similar vein, the Business Development Manager at Shalom Park Estate, Oluwatobi Ariremako, said the sheer scale of Nigeria’s housing deficit, estimated at over 28 million units, was simply too vast for any single entity, including the entire private development sector, to tackle alone.
He continued, “While private developers bring crucial capital, efficiency, and innovative construction techniques to the table, we consistently face significant hurdles. These include the complexities and costs associated with land acquisition, the enormous burden of providing off-site infrastructure, such as roads, power, and water, in undeveloped areas, and the challenges of accessing patient, affordable financing for large-scale projects.
“Hence, private developers cannot bridge this deficit gap alone, nor should they be expected to. The only viable, sustainable path forward is through robust and well-structured Public-Private Partnerships. The government holds the keys to critical elements: making land available with clear titles, providing enabling infrastructure to reduce developers’ upfront costs, and creating a supportive policy and regulatory environment, including accessible mortgage schemes.
“When the public sector provides that enabling foundation, the private sector can then truly unleash its efficiency, deploy capital, and bring the necessary expertise to deliver quality housing at the required scale. This synergy is not just about building houses; it’s about unlocking massive job creation, stimulating local industries, and fundamentally boosting the nation’s economy. It’s a national challenge that demands a truly collaborative national solution.”
