This study investigated the contextual and organizational challenges in public housing provision in Nigeria in the post independence era. It was motivated by dearth of empirical studies on organizational challenges in public housing in this country. Using data derived from a survey of fifteen public housing agencies in southern Nigeria, the study found that scarcity of housing finance, lack of consistency and continuity in housing policy formulation and poor implementation strategies, unfavorable political environment and declining population of tradesmen in the construction industry were key contextual challenges militating against public housing provision. In addition, low level of inter-agencies collaborations, poor staff motivation and rewarding system as well as inadequate operational equipment and vehicles were responsible for the inability of public housing agencies to deliver on their housing mandate in the study area. The paper suggests that stable polity, consistency in housing policies and programs and capacity building in public housing agencies through public-private partnerships are needed to improve on the quantity and quality of public housing in Nigeria.