The need to drive communities into being self-reliant requires strategies that can enable communities to take control of their own need. This requires effective interaction between institutions that are involved in promoting such strategies. This thesis begins by examining the interaction between the multiple stakeholders involved in housing development projects in marginalised communities in Nigeria. However, there are factors that impede on effective community development in housing in marginalised communities in Nigeria. This research identified three main factors namely the 'leadership and strategic direction' of the community housing projects, 'community structure' and 'resources and capabilities' within the communities that is key to determining effective longer term sustainable capability development of housing within marginalised communities. The aim of this research is to recommend strategies to improve effective and meaningful engagement between the multiple stakeholders in housing development projects in building self-sustaining capacity in marginalised communities in Nigeria. A conceptual framework was developed from literature review from relevant literature. The case studies investigate the level of stakeholders' interaction in the project cycle at the conceptualisation and feasibility phase, the physical manifestation phase and the maintenance phase of community housing projects. An in-depth multiple case study approach was adopted to examine and investigate the research problem. Case study approach of development housing projects in two marginalised communities in Nigeria was conducted for this research. Data analysis was done through the use of content analysis and influence / relationship maps. The empirical testing of the propositions illustrated that there is a lack of effective and efficient interaction among the stakeholders involved in the housing project. The results revealed that there is a lack of community participation and that participation of the multiple stakeholders' decreases as the project cycle progresses from the conceptualisation and feasibility phase of the project cycle to the maintenance phase of the project cycle. The study further ensures that the initial framework is robust by linking the barriers and enablers of capacity building to show how these influence the project outcome. The research also highlighted recommendations which include the involvement of the community members in all the stages of the project cycle and particular attention should be given to the implications of leadership fragmentation within the different stakeholders involved in the housing development projects. These recommendations will help the leadership of DNGOs in housing projects to effectively engage with marginalised communities. The research contributed to knowledge by developing a dynamic framework as well as providing recommendations that will be used within community housing projects in marginalised communities in Nigeria.