Affordable Housing Investment Opportunities in Nigeria | Mbvoni
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Nigeria

HOUSING IN NIGERIA

The deficit in the creation of affordable housing in Nigeria compared to the amount of people who require such housing is enormous, and as a result, millions of people in the country are still without this type of accommodation. Currently, housing units are being built at a rate of 100,000 per year, but 1,000,000 are required to decrease the current deficit of 17,000,000.

Compared to 2014, the cost of building a house in Nigeria has risen enormously; by approximately 55%. The costs of the basic materials needed for construction has inflated, with iron rods costing 100% more than they did in 2014, cement by 40%, blocks by 25% and the cost of sand and gravel also increasing by 25%. Cement prices, fortunately, are still lower than the continental average, costing US$ 5.35 per 50 kilograms.

WHY INVEST IN NIGERIA?

  • There is scope for significant growth in the housing sector, especially with house building emphasised for civil servants, the military, students and low income workers. Housing for this sector is seen to be profitable in emerging markets, and with aims of strengthening the housing manufacturing sector and easing the legal process, building in Nigeria would be a shrewd move.
  • With the current yearly population growth of 2.7%, and the building requirements expected to increase to 2,000,000 units per year, it is estimated that US$363bn is required to facilitate the building of these homes.
  • The Nigerian government recently pledged N40bn, or US$134m, with the aim of building 250,000 homes. Nigeria has a relatively low homeownership rate of 25%, and with these new homes, it is hoped that this percentage can increase.

INVEST IN SOMETHING GREAT

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