The Role of Government in Housing Development: A Multi- Dimensional Analysis of Policy Transitions, Market Failures, and Institutional Reform in Nigeria

Dibie; Adeoye Emmanuella; Anthony Dornubari Enwin

doi:10.56201/ijgem.vol.12.no5.2026.pg59.70

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The Role of Government in Housing Development: A Multi- Dimensional Analysis of Policy Transitions, Market Failures, and Institutional Reform in Nigeria

Dibie, Adeoye Emmanuella, Anthony Dornubari Enwin

Abstract

This research paper examined the multifaceted role of government intervention in housing development, focusing on the critical tension between housing as a private market commodity and a fundamental social right. It was observed that this dual character necessitated state involvement to mitigate systematic market failures such as spatial fixity, information asymmetry, and speculative volatility. The study traced the global evolution of housing strategies from post-1945 direct public provision to the neoliberal enabling state paradigm and the contemporary rise of public-private partnerships. A detailed case study of the Nigerian housing sector was conducted, revealing a staggering housing deficit newly validated in 2026 at 14.925 million units, with an additional 15.2 million units classified as structurally inadequate. It was reported that while the Nigerian government established a comprehensive institutional architecture involving the Federal Mortgage Bank of Nigeria and the Federal Housing Authority, implementation was chronically hampered by land administration bottlenecks, weak finance systems, and macroeconomic shocks. The study identified a critical research gap in the lack of evidence-based policy alignment between formal housing delivery and the realities of the informal self-build sector, which accounted for approximately 80% of urban residents. The analysis further integrated contemporary data on the impact of hyperinflation and currency devaluation, which saw cement prices surge to ₦15,000 per bag in 2026, thereby stalling many affordable housing initiatives. It was concluded that the enabling state model required active administrative capacity and transparent accountability to be effective. The findings suggested that addressing the housing crisis requires a fundamental reset of land governance, the scaling of incremental housing models, and the adoption of climate- resilient construction technologies to ensure sustainable urban growth.

Keywords

HousingPolicyAffordableAdministrationPublic-Private Partnerships. 1

References

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The Role of Government in Housing Development: A Multi- Dimensional Analysis of Policy Transitions, Market Failures, and Institutional Reform in Nigeria

Abstract

Keywords

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