‘Nigeria’s housing crisis is not a shortage problem, it is a system problem’ – Imelda on fixing the broken value chain | Prestige Real Estate News

Nigeria’s housing deficit runs into millions of units, yet thousands of new homes are built every year.

The contradiction is at the heart of the country’s property crisis.

According to Imelda Usoro Olaoye, founder of Thinkmint Nigeria, the real problem is not simply the shortage of houses but a system that produces homes far beyond the reach of the average Nigerian.

From slow land approvals and expensive financing to rising construction costs and weak wage growth, she says the entire housing value chain is misaligned with the realities of Nigerian incomes.

“The problem is not just one thing; it’s the entire value chain,” she said in an interview.

Land acquisition remains slow and bureaucratic. Title processing can take years, while developers often have to provide basic infrastructure such as roads, drainage and power themselves, pushing prices higher for buyers.

From slow land approvals and high financing costs to rising construction expenses and weak wage growth, the structure that should support home ownership has become increasingly difficult for the average Nigerian to navigate.

“The problem is not just one thing; it’s the entire value chain,” she said in an interview.

Land acquisition remains slow and bureaucratic. Title processing can take years. Infrastructure such as roads, drainage and reliable power is often absent in developing areas, leaving private developers to provide these essentials themselves. Those extra costs are eventually passed on to buyers.

At the same time, Nigeria continues to build homes that many people cannot realistically afford.

“We design houses aspirationally, not economically,” Imelda said. “The supply we produce doesn’t match the purchasing power of the average Nigerian.

Even as government officials highlight rising non-oil revenue and infrastructure investments, housing affordability remains out of reach for many salary earners.

The core reason, she said, is that incomes have not kept pace with inflation.

Construction costs have surged in recent years, driven by currency depreciation and the heavy reliance on imported materials. In some segments of the market, building costs have doubled. Meanwhile, wages have remained largely stagnant.

The result is a widening affordability gap.

“Even if government revenue rises, the average worker has not experienced proportional income growth,” she said.

Closing that gap will require more structured instalment systems, easier mortgage access and deeper collaboration between the private sector and government.

At Thinkmint Nigeria, Imelda focuses on what she describes as low-entry housing solutions. The concept of affordability, she says, must be grounded in realistic entry points rather than abstract policy definitions.

Today, that often means properties within the N10 million to N15 million range, supported by instalment payment plans that can stretch up to 36 months.

Affordable housing, she explains, should not be mistaken for cheap housing.

“It means structured access. Low entry thresholds, flexible payment plans and transparency with no hidden agency fees,” she said.

The aim is to reduce both the financial and psychological barriers that discourage many Nigerians from attempting to buy property.

The mortgage gap

Nigeria’s mortgage penetration remains among the lowest in the world, and previous reform efforts have struggled to gain scale.

According to Imelda, the problem is that most reforms focused on institutions rather than accessibility.

Mortgage banks and intervention schemes exist, but documentation requirements remain heavy and processing timelines are slow. Many workers in the informal sector, who make up a large portion of the economy, are also excluded from traditional mortgage frameworks.

Interest rates have historically been another barrier.

“Without single-digit, long-tenor mortgage products tied to stable funding pools, scale becomes difficult,” she said.

Although interventions such as the Mortgage Refinancing and Intervention Fund have helped, she believes the gap remains significant.

Trust also plays a role. Many Nigerians still do not fully understand how mortgage systems work or have had poor experiences with earlier housing schemes.

The push to digitise mortgage access

Through Green Mortgage, a digital mortgage facilitation platform, Imelda is trying to simplify and modernise the process.

The idea is straightforward: make mortgage access transparent, trackable and accessible online.

While regulatory resistance has not been a major challenge, she said, behavioural barriers remain.

“The biggest challenge is helping Nigerians trust digital mortgage processing,” she said. “But digitalisation is inevitable. Housing finance will move online.”

Developers under pressure

Developers across the country are also adjusting their strategies in response to inflation and rising interest rates.

Projects are increasingly being designed with smaller unit sizes, phased construction timelines and longer payment structures. Some developers are also exploring locally sourced materials to reduce exposure to foreign exchange volatility.

Margins, she said, are thinner than they were a few years ago.

“The focus has shifted from luxury finishes to functional, efficient housing,” she said.

As inflation persists, many Nigerians now view real estate primarily as an investment hedge rather than simply a place to live.

That shift has both benefits and risks.

On one hand, it brings more capital into the sector and supports project financing. On the other hand, strong speculative demand can push prices further beyond the reach of genuine home seekers.

“It strengthens capital inflow into the sector,” she said. “But if speculation dominates supply, it can price out the people who actually need homes.”

Balancing those forces will require development models and policy frameworks that support both investors and end users.

The policy changes that could unlock housing

If given a few minutes with Nigeria’s housing policymakers, Imelda says three changes could immediately improve the sector.

First is faster land titling processes that reduce approval timelines for developers.

Second is a stabilisation mechanism for mortgage interest rates to make long-term borrowing viable.

Third is tax incentives for developers who focus specifically on low-entry housing projects.

Without these structural adjustments, she believes large-scale housing expansion will remain difficult.

Imelda’s entry into the sector did not begin with development.

After studying marketing in the United Kingdom, she initially built her career as a consultant working across Nigeria and Europe. But over time, the nature of client requests began to change.

“What began as advisory quickly became solution driven,” she said.

Clients were no longer asking only for guidance. They wanted help structuring deals, facilitating financing and shaping development strategies.

“That was when I realised we weren’t just advising the market,” she said. “We were shaping it.”

One of the most difficult business decisions she has faced in recent years was turning down opportunities that promised rapid expansion but lacked sustainable structures.

Walking away from revenue, she said, can be harder than pursuing growth.

“Leadership is not just ambition. It is restraint,” she said. “Growth without structure becomes a liability.”

Navigating a male-dominated sector

Nigeria’s property sector remains heavily male dominated, and she says subtle biases still surface in professional settings.

In some meetings, she notes, technical questions are often redirected to male colleagues even when she leads the deal.

The scrutiny, she adds, is also different.

“Mistakes are remembered longer,” she said.

But consistent performance, she believes, gradually dissolves those perceptions.

“The real estate sector respects results.”

Mentoring the next generation

Through the Business Women Hub, Imelda mentors female entrepreneurs and emerging founders.

One of the key lessons she emphasises is that passion and hard work alone are not enough.

“Hard work is not a strategy,” she said.

Visibility, financial literacy, operational structure and disciplined decision-making are equally important for long-term success.

“Empowerment is not about motivation,” she said. “It is about execution and discipline.”

– Culled from BUSINESSDAY