Insecurity Emerges as Major Threat to Nigeria’s Real Estate Sector, HDAN Warns
Nigeria’s real estate sector faces growing disruption as the Housing Development Advocacy Network (HDAN) warns that escalating insecurity across several regions is deterring investment and slowing housing delivery. The organisation argues that the rise in kidnapping, banditry, and community-level violence is already pushing developers away from active project sites, deepening risks for an industry that contributes significantly to employment and national output.
According to HDAN’s Executive Director, Festus Adebayo, heightened insecurity is accelerating capital flight from the sector. He noted that developers increasingly avoid high-risk areas, which blocks new project starts and jeopardises ongoing construction.
Adebayo stated that if federal authorities do not respond decisively, the country’s estimated twenty-two million housing deficit could worsen. He added that insecurity is not only delaying projects but also discouraging home seekers from considering locations perceived as unsafe.
Security Instability Combined with Rising Costs Intensifies Pressure
HDAN links the slowdown in real estate activity to a combination of security disruptions and rising construction costs. The organisation has previously attributed the drop in housing development partly to inflationary pressures on building materials, which have driven up delivery costs for developers and investors.
With instability making logistics unpredictable and communities unsafe for construction workers, developers face reduced margins and heightened risk. This, according to HDAN, weakens investor sentiment and delays capital deployment across several states.
Call for Coordinated Policy and Security Response
HDAN urged the Federal Government to implement urgent and collaborative measures to stabilise the environment for real estate investment. The group advocates strengthened security deployment alongside more transparent housing policies and improved accountability in project execution.
The advocacy network emphasised that restoring investor confidence requires a secure environment that protects both developers and prospective homeowners. Without meaningful interventions, HDAN warns that stalled projects, abandoned estates, and reduced housing supply could further strain an already fragile market.
Outlook: Security as the Determining Factor for Sector Recovery
The organisation maintains that Nigeria’s real estate sector traditionally a strong generator of jobs and economic activity cannot thrive without reliable security. HDAN argues that fostering confidence among developers, financiers, and home buyers will depend on how effectively government agencies confront insecurity in the months ahead.
