Nedcomoaks’ Kennedy Okonkwo on how Nigeria should address its housing challenge

The housing deficit in Nigeria continues to grow at an alarming rate, with the World Bank estimating a 20% increase per year. To keep up with the growing population and urban migration, the country needs at least 700,000 new housing units annually. Kennedy Okonkwo, the Founder and CEO of Nedcomoaks, discussed potential solutions to Nigeria's affordable housing challenge in an interview with CNBC Africa. Okonkwo highlighted the dire situation in Nigeria, where approximately 80% of urban dwellers are living in substandard housing conditions. Despite the challenges, developers are actively working to address the housing deficit. Investments are pouring into the sector, with initiatives like bifabricated homes in partnership with the Lagos State Government and the entry of international players like Renault into the market. Real estate developers are collaborating with the Real Estate Developers Association of Nigeria to mitigate the housing shortfall. For entrepreneurs like Okonkwo, the affordable housing crisis presents lucrative opportunities, particularly among first-time homebuyers and young professionals. There is growing demand for modestly priced homes offering lifestyle amenities and security. Nedcomoaks is catering to this demand by offering houses ranging from below 30 million to 45-50 million naira, appealing to a broad spectrum of aspiring homeowners. The numbers reflect a positive trend, with an increasing number of first-time buyers opting for two or three-bedroom terraces priced around 25 million naira. Okonkwo emphasized the importance of government intervention to address the long-standing housing deficit. While there have been initiatives like the National Mortgage Refinance Company (NMRC) and the Federal Mortgage Bank loans, more comprehensive policies are needed. The government can play a crucial role in easing the burden on developers by implementing land reforms and fostering public-private partnerships. Okonkwo suggested reforms to streamline land acquisition processes, reduce costs, and provide subsidies to developers. Opening up satellite towns and improving infrastructure connectivity would also enable the development of affordable housing outside congested urban centers. In conclusion, Okonkwo stressed the necessity for ongoing collaboration between the public and private sectors to tackle Nigeria's housing challenge effectively. By embracing innovative financing models, land reforms, and infrastructure development, Nigeria can make significant strides towards closing the housing deficit and providing affordable homes for its growing population.