Infrastructure Costs Hinder Affordable Housing in Lagos, Abuja

Michael Onyeachor, co-founder of Besitz Group Limited, explained that cheap land on the outskirts of Lagos and Abuja does not automatically lead to affordable homes. He noted that developers must account for infrastructure, construction, and financing costs.

Lower land prices can be offset by expenses related to roads, drainage, electricity, and water. High development costs make luxury housing more appealing to developers, complicating the economics of affordable housing in Lagos and Abuja.

Onyeachor suggested that government support through concessionary land, infrastructure, tax incentives, and public-private partnerships could improve the viability of affordable housing projects. He identified emerging areas in Abuja, such as Kuje and Idu, and in Lagos, the Lekki-Epe axis, as attracting investor interest.

However, he warned that without adequate infrastructure and economic activity, cheap land may remain unattractive. The homeownership rate in Lagos is low, with only 31% owning homes, while 51% rent.