Housing Expert Calls for New Model to Open Real Estate to Informal Workers
Nigeria Must Democratise Real Estate to Include Informal Sector – Mayor of Housing
My Ace China, chief executive officer of The Mayor of Housing Limited, has called for the democratisation of Nigeria’s real estate sector through innovative financing models that allow people in the informal economy to access property ownership.
Speaking in an interview with BusinessDay, the real estate entrepreneur argued that Nigeria’s housing market cannot be inclusive unless it creates structures that accommodate the country’s vast informal workforce, which accounts for a large share of economic activity.
According to him, expanding access to housing requires a shift away from conventional mortgage systems that remain underdeveloped in Nigeria.
Weak Mortgage System Limits Housing Access
China explained that mortgage financing has historically been difficult to implement effectively in Nigeria due to structural and institutional challenges.
He noted that the country lacks the institutional frameworks and data systems required to support a large-scale mortgage ecosystem, making it difficult to track borrowers and enforce repayment obligations.
As a result, many Nigerians who aspire to own homes cannot rely on traditional mortgage structures commonly used in more developed housing markets.
Industry analysts have long pointed to low mortgage penetration as a key barrier to homeownership in Nigeria, where housing finance options remain limited compared to global standards.
Thrift and Cooperative Systems as Alternative Financing
To address this gap, China suggested reviving and institutionalising traditional thrift and cooperative systems that have historically supported financial collaboration within Nigerian communities.
He explained that these systems known as Ajo among the Yoruba, Esusu among the Hausa, and Isusu among the Igbo have long provided informal savings mechanisms that allow individuals to pool funds for major investments, including housing.
According to him, the challenge is not the concept itself but the lack of institutional safeguards that ensure transparency and protect contributors’ funds.
He proposed creating a formal institutional backbone to supervise such schemes, similar to the role played by financial regulators in the banking sector.
Expanding Access to Real Estate
China stressed that democratising real estate means developing models that allow individuals outside the formal employment sector to participate in property ownership.
He noted that nearly 80 percent of Nigeria’s economy operates in the informal sector, making it essential for housing policies and financing systems to accommodate this demographic.
“If real estate is to be democratised, we must create models that the informal sector can access,” he said.
Such models could include cooperative housing schemes, flexible financing structures, and hybrid funding approaches that blend traditional thrift practices with modern financial oversight.
Addressing Nigeria’s Housing Deficit
Nigeria continues to grapple with a significant housing deficit, driven by rapid urbanisation, population growth, and limited access to affordable housing finance.
Experts believe expanding innovative financing models could help bridge the gap by enabling more Nigerians particularly low- and middle-income earners to participate in the housing market.
China said that by designing systems that reflect Nigeria’s socio-economic realities, the real estate sector could unlock broader participation and accelerate housing delivery across the country.
Outlook
As Nigeria seeks solutions to its housing shortage, industry stakeholders are increasingly calling for reforms that make real estate more inclusive.
By integrating traditional community financing methods with modern institutional safeguards, experts believe the sector could evolve into a more accessible market capable of serving both formal and informal economic participants.
