Nigeria enters 2026 at a point that could shape the future of housing and real estate for years. Several policy actions that have often moved separately are now unfolding at the same time. The Nigeria Tax Act 2025 took effect on 1 January.
The Ministry of Finance Incorporated Real Estate Investment Fund has started operations. The Land4Growth programme is rolling out digital land titling across states. The Federal Mortgage Bank of Nigeria is undergoing recapitalisation, and a National Housing Data Centre is being set up.
Taken together, these measures form the broadest housing reform effort Nigeria has seen in decades. The question many Nigerians are asking is whether these policies will move beyond official documents and result in homes, secure land titles and accessible mortgages. The housing deficit, estimated at 17 million units ten years ago, is now placed at about 28 million units, despite repeated policy announcements.
The Nigeria Tax Act 2025 introduces provisions linked to housing. Businesses earning below N25 million annually can deduct 20 per cent of rent from taxable income, up to N500,000. Some small-scale businesses in the construction value chain are exempt from certain taxes. These measures acknowledge the link between housing and the wider economy. However, many tenants paying high annual rents will see little relief from a capped deduction. Mortgage-related tax incentives also have limited reach in a system where mortgage lending remains below 1 per cent of GDP and access to formal credit is out of reach for most citizens.
Land reform remains central to any change. According to industry estimates, fewer than 5 per cent of land parcels in Nigeria are formally titled. This leaves large amounts of property value unable to serve as collateral or be transferred with certainty. Investors and homeowners continue to face long delays, unclear ownership records, informal payments and disputes that surface after transactions are completed.
Waliu Adeoye, Managing Director of Stallion Cardinal Homes, said the Land4Growth programme could alter this pattern if it is carried through. The initiative aims to deliver one million digital land titles in its first phase across up to 20 states. Digital records could reduce disputes, support lending and give state governments clearer data for property taxation. Adeoye said the main risk lies in execution, as land administration rests with state governments under the Land Use Act of 1978. He said digitisation must not become “a new avenue for revenue extraction” and should focus on secure tenure, including for people in long-established informal settlements.
Mortgage finance remains another gap. Nigeria’s mortgage-to-GDP ratio is about 0.5 per cent, compared with higher levels in other African countries. The Federal Mortgage Bank offers loans through the National Housing Fund at rates of 6 to 7 per cent over long tenors, yet fewer than 20,000 people access these loans each year. The MOFI Real Estate Investment Fund, with a target capital base of N1 trillion, offers rates below commercial lending, but still requires income records that most workers cannot provide. Over 90 per cent of Nigeria’s workforce operates in the informal economy, leaving many households outside the formal credit system.
Rental housing, which serves most urban residents, is under strain. Rents in Lagos and Abuja have risen faster than general price levels, while demands for one or two years’ rent in advance exclude many households. Adeoye said Lagos State’s proposed limits on advance rent and rent increases could offer relief if carefully applied. He warned that strict controls could reduce supply and push rentals into informal arrangements. He called for standard lease terms, dispute resolution systems and tax measures that support long-term rental housing.
Adeoye said the alignment of tax policy, land reform, finance and data presents a rare test of intent. He said private firms are investing in skills and flexible delivery models, but these efforts cannot replace system-wide change. He added that other countries with fewer resources have made progress by focusing on execution.
“The housing crisis is not primarily a technical problem. We know what works. What Nigeria lacks is a sustained political commitment to implementation beyond announcement ceremonies and policy documents. Nigerians have heard promises before. They will believe results now.”
