These costs can add up quickly, and developers must ensure that they can recoup their investment and turn a profit. The problem is that the cost of building affordable housing is often prohibitively high, making it impossible for developers to deliver affordable options without sacrificing their profit margins.

Let’s take a hypothetical example. Suppose Sirr Jomar, purchase 500 acres of land in a rural area for ₦150,000,000. Before he can even break ground, he’ll need to invest in surveying, government documentation, layout design, let’s say about ₦20,000,000 goes into that. Infrastructure development, roads, electricity, and drainage, that’s about another ₦300,000,000. These costs alone are already running to about ₦470,00,000. (Mind you, these are just approximate figures.)

Once the land is prepared, he would need to bring in construction equipment, hire professionals, and purchase materials. And let’s not forget the cost of labor, project management, and quality control. By the time he has completed the project, let’s say he’s building 200 units of 3 bedroom blocks of flat at ₦30,000,000/units that’s ₦6,000,000,000. There are 2 bedroom, a single unit apartment and other to be considered, by the time he completed the project, the total investment will likely exceed ₦10,000,000,000. (Again, this is just a rough estimate.)

So, how much will he need to charge per unit to recoup his investment and turn a profit? The answer is clear: he will need to charge a premium price that puts affordable housing out of reach for the very people who need it most.

The harsh reality is that private developers are driven by the need to maximize profits. They can’t afford to sell units at a loss, no matter how noble the goal of affordable housing may be. And yet, the general public continues to rely on private developers to deliver affordable housing, without the government providing the necessary support or incentives.

The housing market is subject to the forces of supply and demand, and the reality is that there is often more demand for housing than there is supply. This drives up prices, making it even more challenging for developers to deliver affordable housing options.

Furthermore, the housing market is often characterized by inequality and discrimination. Low-income families and marginalized communities may face significant barriers to accessing affordable housing, including discriminatory lending practices, lack of access to credit, and limited housing options.

It’s only the government that can seriously address the housing crisis, it needs to take a more active role in providing subsidies, tax incentives, and other forms of support to private developers. This could include:

– Providing land at discounted rates or with favorable financing terms

– Offering tax breaks or exemptions for developers who build affordable housing

– Providing subsidies or grants to support the construction of affordable housing

– Implementing policies to reduce the cost of building materials and labor

Without these forms of support, private developers will continue to struggle to deliver affordable housing. And the Nigerian people will continue to suffer from a chronic shortage of affordable housing options.

However, these policies often prioritize the interests of existing homeowners and wealthy investors over those of low-income families and first-time homebuyers.

For example, zoning regulations may restrict the density of housing developments, driving up the cost of land and construction. Building codes may require developers to include expensive features, such as luxury finishes or high-end appliances, that drive up the cost of housing. Tax laws may favor wealthy investors who can afford to hold onto properties for extended periods, rather than first-time homebuyers who need affordable options.