8th to 12th May 2023
Theme: Political Economy in the Built Environment
Case of Nigeria
Case of Nigeria
Nigeria is the most populated nation in Africa. It is also one of the most rapidly urbanizing countries in Africa and according to the World Bank with over 53% of the population in country living in the urban areas. Nigeria has a population that is becoming more skewed to the urban areas, towns, and cities. Rural- urban migration has been identified as a major force driving urbanisation growth, bringing with it opportunities and challenges for cities.
Despite the critical role of the Housing and Built Environment Industry in achieving social and economic development in Nigeria, the industry is facing a myriad of challenges which continues to limit its potentials. There is the dearth of adopting modern, scalable and sustainable practices in the industry. Moreover, it is worth noting that mortgage finance remains a very small percentage of Nigeria’s GDP, which continues to limit deepening the role of the financial sector in the housing value chain.
However, the industry has potentials and opportunities to be explored by the public, private and other relevant stakeholders. It is worth noting that the real estate sector grew by 3.85% in Q2 2021 from 1.77% in Q1 2021 (Uroko, 2021), This is a positive trend considering the fact that the sector contracted by 21.99% in Q2 2020.
housing units delivered
Moreover, the Nigerian housing and built environment have witnessed notable results as a result of several public and private sector engagements. For example, the Family Homes Fund, Federal Mortgage Bank of Nigeria and several private sector developers have cumulatively delivered an estimated 24,000 housing units over the past four years.
Moreover, to address the economic challenges of the COVID pandemic, Nigeria’s federal government approved the $5.9 billion Nigerian Economic Sustainability Plan (ESP). The strategy costs roughly 1% of GDP and is intended to stimulate and diversify the economy, retain, and create jobs and extend more protections to the poor. The recovery plan includes investments in clean energy, agriculture, and infrastructure. An important aspect of the ESP is the government’s commitment to deliver up to 300, 000 homes on an annual basis.
And also the National Development Plan (NDP) 2021 – 2025 aims to improve access to affordable housing in Nigeria and also enhance linkages between the housing sector and the real estate contribution. Emerging initiatives such as Proptech start-ups are gradually gaining ground, which these enhance the implementation of technology to improve processes in the housing market value chain.