The Nigerian government has announced plans to raise the maximum housing loan from the current N50 million cap to N85 million by 2028, in a major shift that could improve housing access for more Nigerians.
Announcing the development at the 15th Meeting of the National Council on Lands, Housing and Urban Development in Sokoto, the Minister of Housing and Urban Development, Muttaqha Rabe Darma, disclosed that the moves is part of government effort to improve access to mortgage for Nigerian workers.
“The proposed reforms are designed to strengthen the housing finance system, improve access to mortgage facilities and ensure that more Nigerian workers can benefit from their contributions to the National Housing Fund”
Nigeria needs about 10.000 units annually to cover its 29 million housing deficit, but the old financing trajectory hold little or no promise of meeting the target.
Darma said while government is committed to reforming the housing finance system, the projected outcomes under a new financing regime will expand access to affordable homeownership for Nigerians.
He disclosed that the Federal Government has directed the Federal Mortgage Bank of Nigeria (FMBN), to increase annual mortgage disbursements to at least 70 per cent of the previous year’s contributions.
He also said government plans to increase mortgage delivery from the current 2,000 to 5,000 by 2028, adding that government will allocate about 30 and 40 per cent of mortgage bookings to informal-sector workers, many of whom have historically faced challenges accessing formal housing finance due to irregular income and limited access to conventional lending arrangements.
Darma also outlined plan to establish a National Housing Finance Authority to among other things provide more coordinated regulatory framework, strengthen accountability and improve the overall performance of Nigeria’s housing finance sector.
He said the recently launched Diaspora Mortgage Programme would provide Nigerians living abroad with opportunities to invest in homeownership in their home country.
The Minister emphasised that improving access to housing finance remains critical to addressing Nigeria’s housing deficit, noting that sustainable housing delivery requires not only the construction of houses but also a functional mortgage system that enables citizens to acquire them.
He cited Rwanda’s experience in expanding its mortgage market through institutional reforms and mortgage refinancing mechanisms, noting that Nigeria could draw valuable lessons from countries that have made deliberate efforts to improve access to housing finance.
Darma reaffirmed determination of the Federal Government to implement reforms that would make housing finance more accessible, particularly to low- and middle-income earners and workers in the informal sector.
He called on relevant institutions and stakeholders to support the reforms, stressing that effective implementation, transparency and accountability would be essential to achieving the government’s housing delivery objectives.
