By Adaobi Rhema Oguejiofor
Ii is no longer news that housing is one of the most important and valuable sectors in Nigeria today, due to its contributions to the nation’s economy. Indeed, Nigeria’s economy has experienced a significant shift with the real estate industry emerging as one of its major players. Following a recent Gross Domestic Product (GDP) and Consumer Price Index (CPI) rebasing, Nigeria’s real estate sector has become the third-largest economic contributor, surpassing the oil and gas sector and following crop production and trade.
The importance of the housing sector in Nigeria’s economic growth cannot be overemphasised, as the sector plays an important role in the social and economic development of any country in general. Over the years, the sector’s contribution to the country’s GDP has been significant, and its growth, if well supported, can have a ripple effect on the entire economy.
However, the sector is currently faced with many challenges,especially inflation, which has led to a significant increase in construction costs.The depreciation of the Naira has also contributed tomaking it difficult for developers to complete projects on time and within budget.
Inflation has a direct impact on the real estate sectoras it increases the cost of building materials, labour, and other expenses. This, in turn, affects the affordability of housing and commercial properties, making it difficult for people to purchase or rent properties.
But despite the challenges, the real estate sector has the potential to contribute significantly to Nigeria’s economy. The sector can create jobs, stimulate economic growth, and increase government revenue through taxes and other fees.
According to the National Bureau of Statistics (NBS), Nigeria’s GDP grew by 3.19 per cent (year-on-year) in real terms in Q2 2024, from 2.98 per cent in Q1 2024 and 2.51 per cent in the same period in 2023.
Industry players are of the opinion that the sector can propel the country’s dream of a N1 trillion economy. Chairman of Gtext Holdings, Stephen Akintayo, while speaking during the recent Global Property Conference in Lagos, stated that he strongly believed that if the Nigerian economy is to be back on track, create jobs, and boost the economy, just like is obtainable in the United Arab Emirate (UAE) and U.S, the real estate sector is of significant importance.
He further said that the conference was organized in order to discuss and address some of the challenges hindering the real estate sector in Nigeria. According to him,“From legal to police issues, to of course, government policies. We felt we needed to bring all the stakeholders together. It is good for investors for practitioners to listen to them and also raise their concerns. The bottleneck has to be removed. And what we discussed today are the right solutions that can really solve those problems.”
He added that some of the resolutions reached at the conference are capable of solving identified challenges if properly implemented by the government and industry players.
Meanwhile, the president of the Senate, Godswill Akpabio, has also declared that Nigeria’s economic future rests on strategic real estate policies, transparent land administration, and sustainable infrastructure development.
While speaking in Lagos during his investiture as a Fellow of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Akpabio underscored the pivotal role of the real estate sector in stabilising the economy, boosting investor confidence, and bridging the nation’s housing deficit.
The Senate President also pledged legislative backing for policies that will make housing more affordable for Nigerians, ensure land administration is transparent and corruption-free, attract local and foreign investments into the real estate sector and promote urban planning that supports economic expansion.
“The policies we enact and the reforms we champion must align with a vision where real estate is not just a private asset but a national economic tool. Housing should not be a luxury but a right. Our goal is to create a framework where every Nigerian, regardless of income level, can own a home without financial strain,” he stated.
With Nigeria facing an estimated 28 million housing deficit, Akpabio stressed the need for strategic collaborations between the government, private sector, and real estate professionals to provide sustainable solutions.
Also, the Board Chairman of Creative Sphere Limited, Mr. Ayo Ogedemgbe, during a weekend press briefing, outlined strategies to attract global investors and bridge Nigeria’s $300 billion infrastructure gap. He emphasised the need for collaboration between local developers and international financiers to unlock the sector’s full potential.
Ogedemgbe made the remark ahead of the Real Estate Innovation and Investment Carnival, scheduled to take place from May 20 to 22 at the Velodrome, National Stadium, Abuja.
According to him, having been in the housing sector for over 20 years, he has witnessed firsthand the contribution of real estate to the economy.
“In fact, available data shows that real estate contributes 6.3per centto GDP and employs 15per centof our workforce, suggesting that this sector holds the keys to unlocking prosperity for millions. Yet, as we celebrate its potential, we must also confront its challenges with clarity and courage,” he concluded.