Abuja: As Nigeria grapples with a deepening housing crisis, Prof. Sam Amadi, Director of the Abuja School of Social and Political Thought, is sounding the alarm on what he calls an “artificial scarcity” in the rental market.
In a candid interview, Amadi urged governments at all levels to introduce targeted incentives and vacancy taxes to unlock thousands of unoccupied homes and spur genuine housing development.
He expressed concern over the alarming number of Nigerians without access to adequate housing.
According to him, the problem does not lie only in the number of houses available, but also in the usability and accessibility.
“We have millions of housing units across the country, yet many are not habitable or accessible.
“The real issue is not just a housing shortage, but a shortage of usable and affordable homes,” he said.
Amadi said that many homes in the country were not built for shelter or rental income, but as a means of laundering illicit funds, adding that as a result, many completed houses remained unoccupied for years.
“People build houses with laundered money and leave them empty. They do not rent them out because they are not looking for returns.
“Unlike those who use bank loans or their salaries, these individuals do not feel the pressure to earn income from their property investments,” he said.
He said that the practice had created an artificial scarcity in the rental market, in spite of the visible presence of unoccupied homes.
To address the situation, Amadi recommended the implementation of a targeted policy that taxed vacant houses.
The government should impose heavy taxes on houses that remain unoccupied for more than two years after completion.
“This will push property owners to either rent them out or face financial consequences. Such a policy will help bring down rental prices and improve access to housing,” he said.
On the issue of the Property Tax Bill, the don said that property tax could affect investment and economic activity, adding that a more targeted approach was needed.
“We are not talking about general property tax, which could discourage investment.
“What I am proposing is a vacancy tax; a levy on those who choose not to rent out their property. If you rent it, you do not pay; if you do not, you pay,” he said.
Amadi further expressed concern over the high cost of housing in many urban areas, noting that exorbitant prices often had no basis in absolute value.
