The Federal Government has raised alarm over the effects of rapid population growth and unplanned urban expansion on Nigeria’s housing and construction sector, saying the twin trends are driving up building costs and straining existing infrastructure. The warning came on January 22, 2026, as officials framed these dynamics as a key challenge to sustainable urban development across the country.
According to government assessments, Nigeria’s population growth and migration to cities are creating unprecedented pressure on urban land, roads, utilities, and housing supply, conditions that push construction expenses higher because the demand for scarce building materials and land far exceeds supply. This pattern, officials noted, also contributes to inflationary pressures on cement, iron rods, and other core construction inputs, making new projects more expensive for both developers and prospective homeowners.
Authorities at the Federal Ministry of Housing and Urban Development have pointed to broader housing deficits nationwide that stem from the mismatch between rapidly growing demand and the pace of housing delivery. Urbanisation rates in major centres such as Lagos, Abuja and Port Harcourt have surged, driving intense competition for developed land and pushing prices higher. Observers say that unplanned settlement growth and limited access to infrastructure exacerbate these pressures, complicating efforts to keep housing affordable.
Government leaders are advocating for enhanced urban planning, land reform, and expanded infrastructure investment as tools to mitigate the cost escalation and meet housing needs. Proposed measures include encouraging public-private partnerships, prioritising local building material production, and modernising land administration systems to improve access and affordability.
The rising cost of construction not only affects middle-income and low-income households but also threatens broader economic productivity by slowing real estate development, raising rental prices, and placing additional burdens on state and federal housing programmes. Analysts stress that without coordinated planning and reform, urban centres will continue to face inefficiencies and high living costs that risk deepening inequality and undermining inclusive urban growth.
