Is Nigeria getting closer to affordable housing?

Nigeria, like many other developing nations, is facing a significant housing deficit that presents challenges for its citizens, particularly those aspiring to own their first home. The cost of property ownership in Nigeria often comes with huge lump sum payments, making it difficult for many to access traditional mortgage financing. However, a new initiative called the Family Homes Financing Initiative aims to address these obstacles and make homeownership more attainable for Nigerians. In a recent interview on CNBC Africa, Rolake Akinkugbe-Filani, Chief Commercial Officer of Mixta Africa, shed light on the housing situation in Nigeria and the potential solutions offered by the Family Homes Financing Initiative. Akinkugbe-Filani emphasized the importance of the construction sector, which contributes about 5% to Nigeria's GDP and plays a crucial role in job creation. The government's goal of creating 1.7 million jobs through initiatives like affordable housing underscores the significance of addressing the housing deficit. One of the key challenges facing aspirational homeowners in Nigeria is the lack of access to affordable financing. With 78% of the population earning less than $100 a month, traditional mortgage options are often out of reach for many Nigerians. To bridge this gap, Akinkugbe-Filani suggested exploring micro-mortgages and housing micro-finance options tailored to the needs of low-income earners. By developing innovative financial products and encouraging partnerships between the public and private sectors, more Nigerians can access housing opportunities. Furthermore, the high costs of land and infrastructure pose significant barriers to affordable housing development. To address this issue, Akinkugbe-Filani proposed partnerships where the government provides land equity, enabling developers to focus on other aspects of construction. This approach can help lower the overall cost of housing projects, making them more accessible to a broader segment of the population. Additionally, leveraging local manufacturing and sourcing materials can reduce dependence on foreign exchange and contribute to a more sustainable housing ecosystem. The focus on sustainability and inclusivity is crucial for Nigeria's housing sector to thrive and contribute meaningfully to the country's economic growth. By fostering dialogue, embracing technology and innovation, and implementing robust financial solutions, Nigeria can make significant strides in addressing its affordable housing challenge. The collaborative efforts of stakeholders from both the public and private sectors are essential to ensuring the success of initiatives like the Family Homes Financing Initiative. As the housing landscape in Nigeria continues to evolve, initiatives like the Family Homes Financing Initiative represent a beacon of hope for millions of Nigerians dreaming of owning their own homes. The commitment to creating affordable housing opportunities and fostering a dynamic housing market will not only transform the lives of individuals and families but also drive economic development and social progress in Nigeria.