Business
Housing Sector Counts Losses Amidst Covid-19
As the economic lockdown enters its third week, the housing sector is already counting losses as experts express fear that the built industry may witness more slumps.
Former chairman of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) Rivers State, Mr Emmanuel Mark, in a chat with The Tide explained that the built sector is largely driven by informal sub-sector, hence with the economic lockdown, most of the activities in the sub-sector will be grounded.
“Majority of those in the informal sector are those who earn daily pay and if they are not working, certainly there would be a default of rents and other payments,” Mark sub-mitted.
He went further to explain that if the economic shutdown persists there would be challenge in meeting payment of rents, especially those earning daily pay.
Mark, who is also Regional President of International Right of Way (IRWA) in Nigeria, stated that already demand for properties is going down because a lot of investors are not willing to invest in the sector, but will rather have liquid cash to stay afloat.
On the way to curb the situation, Mark implored government to provide an economic stimulus to ameliorate losses and help the Housing sector, which he said is a key sector in the economy.
On her part, Principal Manager of Custom Realities, Mrs Oriaku Hanson Oyet-Ile submitted that the housing sector was seriously hit by the economic lockdown, occasioned by the Coronavirus pandemic.
“Construction costs will go up, leasing will not go up and so landlords will be willing to bring their rents down so they can survive,” she said.
Oyet-Ile said social distancing has equally made construction activities to be difficult, as most sites are now shut down.
She further stated that, “more empty properties will persist, because rent and buying of properties are no longer active. But those doing their own jobs will not be much affected. Wisdom requires that you be as liquid as possible now.”
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.