Nigeria’s housing sector is facing a growing issue; many estates remain empty while millions struggle to find affordable homes. It is for this reason stakeholders are calling for property tax relief to encourage owners to sell or rent vacant properties, which could help reduce unused homes and support the development of more affordable housing.
At the 6th African Housing Awards in Abuja, Festus Adebayo, the Executive Director of the Housing Development Advocacy Network (HDAN), emphasized that reforms are urgently needed. “The tough economy makes it difficult for both the private and public sectors to provide affordable housing,” Adebayo said. “Tax relief can motivate developers to build low-cost homes.”
The government is already working on housing projects, with Minister of Housing Ahmed Dangiwa announcing the construction of 12 “Renewed Hope Estates” and urban developments in Lagos, Kano, and Abuja, totaling over 10,000 homes. However, private sector involvement remains crucial, and tax incentives could unlock stalled projects.
Mortgage banks and financial institutions are also making moves to address the housing crisis. The Federal Mortgage Bank of Nigeria (FMBN) has launched new products like rent-to-own and non-interest mortgages to make homeownership more accessible. Additionally, it has provided a N100 billion guarantee to support housing developments nationwide.
Despite these efforts, high construction costs, limited financing, and poor infrastructure are major challenges. Experts believe that targeted tax relief could ease these obstacles, encouraging investment and reducing the housing deficit.
Former Minister Musa Sada stressed the importance of affordable housing, noting that 80% of the population relies on social housing. “Housing is a basic right,” Sada said. “We need policies that support both public and private development to meet the housing demand.”
With the right reforms, stakeholders hope vacant estates will be transformed into vibrant communities, helping to meet Nigeria’s urgent housing needs.