Not Yahoo, Not Tech: Housing, Real Estate Contributed ₦77tn to Nigeria’s Economy in 2025 — Minister

By Our Reporter

Nigeria’s housing and real estate sector contributed more than ₦77 trillion to the country’s economy in 2025, with real estate services alone accounting for ₦41 trillion, representing 13.4 per cent of the nation’s Gross Domestic Product (GDP), the Minister of Housing and Urban Development, Arc. Muttaqha Darma, has disclosed.

Darma made the revelation in Abuja during a stakeholders’ validation workshop on the National Housing Data Programme and the National Housing and Built Environment Regulation Policy, describing the housing sector as one of Nigeria’s biggest economic drivers despite persistent challenges, including poor regulation, weak mortgage financing and inadequate housing data.

According to a statement issued by the ministry, the minister said the workshop marked the final stage of consultations before the proposed policies are transmitted to the Federal Executive Council (FEC) for approval.

“This gathering is not a ceremony. It is the last door these policies pass through before the Federal Executive Council. What you say here will change what I carry to Council. I am not asking for applause. I am asking you to be critical,” Darma said.

He noted that although the rebasing of Nigeria’s economy showed the sector’s growing contribution to national output, millions of Nigerians still face fraudulent property transactions, abandoned housing projects and weak consumer protection due to the absence of a robust regulatory framework.

“Following the rebasing of the nation’s economy, real estate services alone account for about 13.4 per cent of Nigeria’s GDP, representing approximately ₦41 trillion, and together with construction, contributed over ₦77 trillion to the economy in 2025,” the minister stated.

Drawing lessons from Saudi Arabia and Dubai, Darma said reforms such as compulsory escrow accounts, licensing of developers and estate agents, and stronger regulatory oversight have significantly boosted investor confidence and accelerated housing development.

He cited Dubai’s experience, where compulsory escrow accounts introduced in 2007 helped the emirate record more than 270,000 property transactions valued at about $250 billion in 2025, arguing that Nigeria should adopt similar measures to safeguard homebuyers, improve construction standards and attract greater domestic and foreign investment.

The minister also raised concerns over the recurring cases of building collapse and Nigeria’s underperforming mortgage system, noting that despite millions of workers contributing annually to the National Housing Fund, access to affordable mortgages remains limited.

According to him, the proposed National Housing and Built Environment Regulation Policy seeks to introduce compulsory licensing for developers and estate agents, escrow protection for buyers’ funds, improved professional standards, better construction quality, enhanced land administration, urban renewal without displacement and the establishment of a National Housing Data Observatory.

The policy also proposes the creation of a National Housing Industry Regulatory Commission to strengthen oversight of the sector nationwide.

Darma further disclosed that the proposed National Mortgage Industry Policy would establish a National Housing Finance Authority, reform the Federal Mortgage Bank of Nigeria (FMBN), expand access to the National Housing Fund for workers in the informal sector and create a stronger framework for diaspora housing investment.

On housing statistics, the minister said the Technical Committee adopted internationally recognised methodologies, including the World Bank Adequate Housing Index and the UN-Habitat Household Crowding Index, which estimated Nigeria’s core housing deficit at approximately 15 million housing units.

He urged stakeholders to critically examine the methodology, stressing that reliable housing data is essential for effective planning, policy formulation and investment.

Earlier, the Permanent Secretary in the ministry, Dr. Shuaib Belgore, who chairs the 13-member National Housing Data Steering Committee, said fragmented data and weak regulatory enforcement have continued to hinder effective planning, investor confidence and housing quality.

Chairman of the House of Representatives Committee on Regional Planning and Urban Development, Hon. Awaji-Inombek Abiante, also called for reliable, locally generated housing data, saying sustainable reforms must be built on credible information.

Meanwhile, the Managing Director of the Federal Mortgage Bank of Nigeria, Shehu Usman Osidi, announced that the bank had completed the development of a National Mortgage Registry, a central digital repository for mortgage transactions across Nigeria, and said it is ready for deployment after stakeholder consultations, data collection and validation.

Separately, Darma reaffirmed Nigeria’s commitment to strengthening collaboration with Saudi Arabia on housing development, infrastructure investment and technology transfer as part of efforts to bridge the country’s housing deficit.

Speaking during a meeting with Saudi Arabia’s Ambassador to Nigeria, Yousef Bin Muhammad Al-Balawi, the minister said strategic partnerships with countries that have successfully delivered large-scale housing projects would accelerate affordable housing delivery, create jobs and support the Federal Government’s Renewed Hope Agenda.

Al-Balawi, in his remarks, pledged Saudi Arabia’s support for Nigeria’s housing reforms, saying the Kingdom is willing to share its technical expertise, best practices and investment capacity while creating employment opportunities for qualified Nigerian professionals in the housing and construction sectors.

This version is more concise, reads like a national newspaper report, removes repetition, and places the strongest news angle—the ₦77 trillion contribution—at the top.