Affordable Housing Impossible Without Land Subsidy – Developer

The Managing Director of Abuja-based real estate firm, Big Homes Limited, Mr. Topsy Essien, has cautioned that Nigeria’s dream of providing affordable homes will remain unattainable unless government directly subsidises land costs, which he says account for more than 60 per cent of total construction expenses in the Federal Capital Territory (FCT).

Speaking in Abuja on Thursday at the commissioning of the firms Ivy’s Court in Mabushi, Essien urged the Federal Capital Territory Administration (FCTA) to intervene by allocating reclaimed lands to reputable real estate developers for affordable housing projects.

According to him, the current structure in which private individuals obtain land at little or no cost and resell at exorbitant prices undermines efforts to make housing accessible to Nigerians.

“If government can bear the cost of lands alone, the issue of housing deficit will be solved. It is unfair when individuals get land for free and then sell them back at outrageous prices,” he said.

He disclosed that the company has successfully delivered homes to about 100 families, emphasising that the firm prioritises quality locations and partnership-based project models rather than mass housing projects.

Essien advised mortgage banks to deepen their intervention, saying ordinary Nigerians should be able to access financing substantial enough to purchase a home.

“Mortgage banks can be of great help. The amounts people access should be tangible. You cannot give someone a loan that isn’t enough to buy any house,” he stressed.

He also advocated for federal and state-level housing subsidies, arguing that real estate should benefit from the same policy support extended to other sectors.

The real estate executive commended the Minister of the FCT, Barrister Nyesom Wike, over ongoing infrastructure projects, and encouraged the ministry to allocate repossessed lands to certified real estate companies under clear public-private partnership (PPP) arrangements.

“Government can state the type of houses it wants. Repossessed lands should be given to developers already in agreement with authorities to deliver affordable homes,” he said.

Essien further explained that once land acquisition which constitutes the bulk of development costs is removed, developers would be able to deliver significantly cheaper homes.

“Sixty per cent of the cost of building is land. If government takes care of that, what remains is the cost of blocks, plastering and finishing. We can deliver affordable houses. Some developments that cost ₦50 million today would be much cheaper if the land component is removed,” he added.

He noted that without government intervention, land racketeering will continue to drive housing prices beyond the reach of ordinary Nigerians.