Emmanuel OchayiLagos State has allocated N101.6 billion for housing and community amenities in its 2025 budget, marking an 81.69% increase from the previous year’s N55.92 billion allocation. This substantial investment aims to tackle the city’s significant housing deficit, which has been a growing concern for residents and policymakers alike. Despite being Nigeria’s commercial hub, Lagos faces a housing shortage estimated at over 3 million units, with a substantial portion of its population residing in informal settlements. The pressing question remains: Can this increased budgetary allocation effectively address Lagos’s real estate crisis?
Understanding Lagos’s Housing Deficit
Lagos’s population has been on a steady rise, with current estimates suggesting over 20 million residents. This rapid urbanisation has outpaced the development of necessary infrastructure, leading to a housing deficit that has been a persistent challenge for the state. Nationally, Nigeria faces a housing deficit of approximately 28 million units, with Lagos contributing a significant portion to this figure.
Join our WhatsApp ChannelREAD ALSO: Only 27% Of Job Seekers In Lagos Have Bachelor’s Degree As Majority Hold SSCE
The shortage has resulted in overcrowded living conditions, inflated rental prices, and the proliferation of informal housing settlements lacking basic amenities.
Breakdown of the 2025 Housing Budget
The 2025 budget earmarks N101.6 billion for housing and community amenities, representing 3% of the state’s total N3.366 trillion budget. This allocation is intended to fund several key initiatives:
-
Affordable Housing Development: The state plans to construct new housing units targeting low to middle-income earners. Past projects, such as the 444 units at Sangotedo Phase II and 420 units in Badagry, serve as precedents for these efforts.
-
Public-Private Partnerships (PPPs): Collaborations with private entities aim to boost housing supply. For instance, the Odonla-Odogunyan Housing Estate Project, developed in partnership with Access Bank Plc, is set to deliver 704 housing units across 44 blocks.
-
Urban Infrastructure Upgrades: Improving existing infrastructure to support new and existing housing developments is a priority. This includes enhancing roads, drainage systems, and public utilities to ensure sustainable living conditions.
Expert Opinions on the Budget Allocation
Industry experts have weighed in on the potential impact of the increased housing budget. Mr John Okoye, a real estate surveyor, highlighted the importance of regulatory measures, stating, “The government should implement policies aimed at regulating the rental market to prevent exorbitant increases. The N101.6 billion budget increase is a step in the right direction, but it is far from sufficient to solve Lagos’s real estate crisis. Lagos has a housing deficit exceeding 3 million units, and the state’s population continues to grow rapidly. Without complementary policies such as land reforms, affordable mortgage schemes, and stricter rent control measures, this budget alone will not create sustainable change. We need long-term strategies and policies that ensure the private sector and government work together to make housing genuinely affordable for low- and middle-income earners”
Adebayo Juwon, an architect, emphasised inclusive development, noting, “Development needs to be a lot more even. While increased government spending on housing is commendable, the real estate crisis in Lagos is not just about money—it’s about execution. Public-Private Partnerships (PPPs) must be properly managed to avoid delays and corruption, and the focus must be on mass housing, not just luxury estates. If the government streamlines land acquisition processes and invests in infrastructure in new housing zones, we could see significant progress. However, if this budget is not effectively utilized, it may not have any lasting impact on the housing crisis.”
Professor Taibat Lawanson, an urban planning expert, pointed out the challenges faced by marginalised communities, stating, “Often there is a narrative that residents are not Nigerians and that they are there illegally, essentially looking away from the fact that everybody who is born in Nigeria is a Nigerian national no … .”
Challenges to Effective Implementation
While the increased budget allocation is a positive step, several challenges could hinder its effectiveness:
-
Rapid Population Growth: Lagos’s population continues to grow rapidly, potentially outpacing housing development efforts. This demographic pressure could negate the impacts of new housing projects if not managed effectively.
-
Land Acquisition and Development Costs: The high cost of land and bureaucratic hurdles can delay housing projects. Streamlining land acquisition processes and reducing associated costs are crucial for timely project execution.
-
Infrastructure Deficiencies: Without concurrent investments in infrastructure, new housing developments may lack essential services, leading to suboptimal living conditions. Ensuring that infrastructure development keeps pace with housing projects is vital.
The Role of Public-Private Partnerships
Public-Private Partnerships (PPPs) are pivotal in addressing the housing deficit. By leveraging private sector efficiency and capital, the government can expedite housing delivery. However, clear frameworks and incentives are necessary to attract and retain private investors. Successful PPPs can lead to innovative housing solutions, cost reductions, and timely project completions.
Potential Impact on the Real Estate Market
The increased budget allocation could have several implications for Lagos’s real estate market:
-
Stabilisation of Rental Prices: An increase in housing supply may alleviate pressure on rental markets, potentially stabilising or reducing rental prices over time.
-
Investment Opportunities: Developers and investors might find new opportunities in affordable housing projects, leading to diversified real estate portfolios.
-
Economic Growth: Enhanced housing infrastructure can stimulate economic activities, create jobs, and improve the overall quality of life for residents.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
