Abstract: Housing is one of the basic human needs. Over the years successive government have devised several Housing reform programmes and launched strategies to tackle the tremendous shortfall in housing in Nigeria. Unfortunately, despite these efforts sustainable housing development continues to be a mirage. It has been observed that the phenomenal rise in population in urban centres, spontaneous increase in size of most Nigeria cities have created severe housing problems in Nigeria. These have resulted to diverse urban problem ranging from overcrowding, slum and squatter areas, inadequate infrastructure and possibly over 60% of Nigerians are now homeless. Ensuring adequate and sustainable housing delivery in our cities thus constitutes a critical challenge to governance. This paper reviews literature on housing, housing policy and sustainable housing development. The various government response at solving the housing problems and reasons for failure are identified. The challenges to effective housing development and delivery in Nigeria are examined. Finally. solutions to achieving sustainable housing development in Nigeria are presented.