The Federal Government is courting global investors to address Nigeria’s housing deficit and tap into a real estate market projected to reach $2.25 trillion by the end of 2025.
Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, made this appeal during a panel at the Saudi Arabia Real Estate Forum on January 27, 2025, at the Four Points Hotel in Riyadh.
The Forum, themed “Balance and Innovation in the Real Estate Landscape,” also featured panelists like HE Eng. Abdullah Al-Attiya, Minister of Municipality, Qatar, and HE Dr. Abdulla Muththalib, Minister of Construction, Housing, and Infrastructure, Maldives.
Dangiwa urged international investors to explore Nigeria’s real estate sector, particularly through the Renewed Hope Cities and Estates Programme, highlighting the 28 million-unit housing deficit and growth potential driven by urbanization. He also revealed that the sector contributed 5.2% to GDP in 2024, with the market expected to reach $2.25 trillion by 2025.
“Nigeria’s real estate sector contributed around 5.2% to the nation’s GDP in 2024, and will increase in market volume to $2.25 trillion by the end of 2025. Despite this, there is still tremendous opportunity for investment, especially in the Residential Real Estate segment. Nigerians need homes now more than ever and you can partner with the Nigerian government to deliver these houses at scale,” Dangiwa said to the investors.
The Minister highlighted the Federal Government’s efforts to address the housing deficit through large-scale programs like the Renewed Hope Cities and Estates Programme, showcasing how public-private partnerships can deliver affordable housing and offer global investors strong returns.
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Minister Dangiwa acknowledged the challenges developers face in balancing affordability with profitability in Nigeria’s housing sector. To address this, he highlighted government incentives such as bankable offtake guarantees, low-interest financing, and facilitated land access to attract investment in affordable housing.
He also mentioned the planned National Social Housing Fund, which aims to provide long-term concessional financing for lower- and middle-income Nigerians. Additionally, innovative models like off-plan sales and bulk purchasing by cooperatives are being explored to reduce financial risks while maintaining affordability.
- On sustainability, Dangiwa emphasized the use of energy-efficient buildings, local materials, and smart construction techniques to reduce operational costs. The Ministry is collaborating with international partners like IFC EDGE to integrate green building practices and establish Building Materials Manufacturing Hubs to reduce import reliance and create jobs.
- The Minister also discussed efforts to improve mortgage accessibility, including the expansion of the Federal Mortgage Bank with N500 billion for single-digit mortgage products.
He also highlighted collaborations with the Ministry of Finance Incorporated to leverage the Nigerian Capital Market for housing development, alongside the introduction of rent-to-own schemes and rental assistance products to ease homeownership.
