Business
Nigeria’s Housing Deficit’ What Nigeria’s Housing Deficit’ What Hope In 2010?
One major area that posed so much challenge to Nigeria’s development is the area of housing and property development. Virtually every city in Nigeria is faced with the challenge of affordable accommodation for its inhabitants, particularly those in Lagos, Port Harcourt and Abuja which could be said to be the worst hit.
According to the world bank estimates, Nigeria needs to produce about 720, 000 housing units annually for the next 20 years, so as to be able to close the gap in her housing demand and supply.
The Minister of State for Works, Housing andUrban Development, Grace Ekpiwhre in a press statement recently posited that only 19.2 household in Nigeria live in their own homes.
In some highly populated cities like Lagos, statistical data have revealed that 65 percent of the 15 million residents of the city live in rented apartments, and spend over 50 per cent of their monthly earnings on house rent.
The same could also be said of the Federal Capital Territory (Abuja), Port Harcourt, Enugu as well as other major cities across the country where income earners spend a very higher percentage of their income on rent.
To make matters worse on the provision of affordable housing, land it self has become extremely difficult to acquire, and various land owners have tended to take advantage of the situation to keep prices at cut throat level, where as the average income earner, especially the junior public servants who depend on monthly salary can hardly acquire a plot of land, even if he had to save 50 percent of his monthly salary.
In all these, government, both at the federal, state, and local government have not really taken giant steps towards addressing the matter, even if it means granting loans for housing to workers enmass.
It is for these reasons that the efforts put up by President Umaru Yar’dua on the land reform agenda is most commendable because of some notable impediment it is viewed to address in respect to home ownership and access to land.
The land use act was promulgated as the law use decree in 1978 by the military government under Chief Olusegun Obasanjo, and is seen or viewed as a major obstacle to real estate development business.
Report citing the United Arab Emirate example quoted Abdul Kadiri of Ark Gold properties of advising Nigeria to go ahead – long for such reform for housing development, and such that can boast tourism.
According to him “The United Arab Emirate (UAE) is today world tourism destination, and this is simply because of changes it made in its land rules. In 2002, UAE liberalised its land rules, giving even foreigners freedom to acquire land and develop on same. Today, the story is what we see as Masdar City in Abu Dubai, Burji Dubai and Burj Al-Arab both in Dubai”.
It is true that much have been said about affordable houses and ownership of houses in the time past. The year 2009 is gone, and here we are in 2010, and the question still is the way forward to actualise this goal of addressing Nigerian’s housing deficit onward.
Government has so much part to play in this regard. Housing loans should be made available to public servants to enable them own and live in their own houses.
Apart from providing soft housing loans, government at various levels can as well acquire land and either build on the land and resell them to public servants, while the cost be deducted from their salaries over a period of a given time frame.
Private and over limited liability companies should also be encouraged to take the issue of housing for their workers very seriously through policies that will put them on focus for such important welfare matter.
At this point in time, the land reform becomes imperative because it is supposed to free land, not for the improvement of home ownership alone, but for other productive purposes like the agriculture, tourism and industries among others.
Nigeria is blessed with vast land and other resources, and if government will have the political will to implement the reforms and other solutions, only time will tell what we will achieve in a short while.
Corlins Walter
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
