Nigeria

This report summarizes the results of the analytical work on housing market finance carried out by the World Bank Group at the request of the Ministry of Finance. The purpose of the work was to inform the policy dialogue about how best to develop a sustainable housing finance market in Nigeria, and improve the effectiveness of interventions aimed at stimulating the housing market and providing quality housing to the population. The work was funded by DFID and carried out over 2013 and 2014. Experience has shown that an increase in housing production, especially at the lower reaches of the market, stimulates job creation, both skilled and unskilled; and that housing and other infrastructure investment is strongly linked to economic growth. While the availability of housing finance is essential for increasing housing production, sustainable and equitable housing production also depends on: (a) access to residential lands and basic services; (b) an efficient and transparent land administration; (c) legal protections; and (d) a macroeconomic environment that maintains low inflation and low interest rates. An essential part of making housing finance work for the poor is the availability of houses at lower prices in the market. The report summarizes the institutional landscape, policy framework, and public and private sector actors involved in housing finance, and focuses on the underlying reasons for the lack of housing finance, particularly for lower-priced houses for the poor. The report also summarizes issues related to the construction industry and building materials, an understanding of which is key to developing transformative policies in the sector. Finally, the report proposes possible new approaches to housing finance in Nigeria, based on international best practices.