Builders’ Group Fears Redundancy As Ministries Take Over Direct Housing Construction

The Association of Housing Corporations  of Nigeria (AHCN) has voiced serious concerns about the growing trend of Ministries of Housing at the federal and state levels directly constructing houses, warning that this is making housing corporations irrelevant.

Speaking at the 2025 World Habitat Day Celebration in Abuja, AHCN president, Eno Obongha expressed worry over the poor performance of housing corporations, saying, “The trend whereby Ministries of Housing both at the Federal and State level are involved in direct housing construction under the guise of public-private partnership is leading to the redundancy of duly constituted State Housing Corporations and the Federal Housing Authority.”

He urged state governors to act swiftly, stating, “We call on the Governors of Taraba, Bauchi, and Nasarawa States as well as their Houses of Assembly to re-establish Housing Corporations or incorporate them into limited liability companies for housing implementation in line with the provision of the Nation’s Housing Policy, failing which they should be sanctioned.”

Obongha emphasised the proper roles of the bodies involved: “The Federal and State Ministries are principally created for policy formulation and supervision, while State Housing Agencies are statutorily saddled with the implementation of government policy on housing provision.

Merging Housing Corporations with the State Ministries of Housing is an aberration, illegal, and unacceptable.”

He further highlighted the national housing challenge, urging for practical solutions: “We need pragmatic approaches and appropriate strategies to tackle the nation’s housing deficit.

Prioritising affordable mass housing is crucial as it can empower citizens and reduce unemployment, thereby serving as a tool for economic recovery.”

Among his recommendations were renewed government commitment to social housing, increased use of local building materials, slum upgrading, scaling up public-private partnerships, and innovative financing mechanisms.

On the importance of unity and coordination, Obongha said, “The Renewed Hope Housing Agenda needs to be properly harmonised and synchronised with state governments, using state housing corporations as agents of delivery to take the agenda to the next level. This will no doubt open up the economy and help drive our recovery by creating employment opportunities for our teeming unemployed youth.”

He called for transparency and urged states to reduce building and land costs, provide affordable rental housing, and develop Agric-Villages to curb rural-urban migration.With the housing sector contributing 17.4 per cent to Nigeria’s GDP in the first quarter of 2025, Obongha stressed, “Our young people deserve a future free of uncertainty. We envision a new Nigeria where housing becomes the engine of economic growth and that dream is achievable if harmonisation is well coordinated and executed.

“The warnings and recommendations from AHCN underscore the urgent need to clarify roles and reinforce housing corporations to effectively address Nigeria’s housing deficit.