Nigerians To Get More Home Loans As FG Raises Mortgage Target From 500 to 2,000 Yearly
- The federal government ordered FMBN to channel at least 40% of annual NHF contributions into mortgage financing to boost home ownership
- Housing Minister Mustapha Rabe Darma announced the directive at a real estate conference in Abuja on Thursday
- The government also plans to launch a social housing scheme covering all 774 LGAs for teachers, healthcare workers and vulnerable Nigerians
The federal government has directed the Federal Mortgage Bank of Nigeria (FMBN) to allocate a minimum of 40% of annual National Housing Fund (NHF) contributions towards mortgage financing, as part of a broader push to expand homeownership and reduce Nigeria's growing housing shortfall.
Minister of Housing and Urban Development, Mustapha Rabe Darma, announced on Thursday at a real estate conference in Abuja. He also instructed the bank to increase annual mortgage disbursements from roughly 500 to at least 2,000.
Darma said the directive is aimed at making affordable housing more accessible, deepening mortgage financing, and drawing greater private sector participation into the housing industry.
Source: Getty Images
Regulatory Overhaul in the Works
The minister said his ministry is putting the finishing touches on a comprehensive regulatory framework for the housing and built environment sector, which will be opened to stakeholder consultation before the Federal Housing Council considers it for approval, BusinessDay reports.
Key elements of the framework include developer licensing, escrow protection for homebuyers' funds, tighter construction quality control, professional registration, land value capture, urban renewal initiatives, land readjustment programmes, and the creation of a National Housing Industry Data Observatory.
Darma said.:
"We want these policies to be driven by stakeholders rather than imposed from above. That is why we are opening them for extensive consultation before adoption."
He also revealed that the ministry's National Housing Data Committee has produced what he described as Nigeria's most credible estimate of the housing deficit, placing it at 14.9 million units, with an additional 14 million Nigerians living in substandard conditions.
The minister further disclosed that the federal government would soon launch the Renewed Hope Social Housing Scheme, targeting the delivery of 200 housing units per local government area across all 774 LGAs, with teachers, primary healthcare workers, and other vulnerable groups as the primary beneficiaries.
Source: Getty Images
Experts Push for Action Beyond Policy
On rent, Darma raised concern over rising costs in cities such as Lagos, Abuja, and Port Harcourt, referencing the National Bureau of Statistics' 2019 Living Standards Survey, which found that about 49% of urban residents rent their homes.
He condemned arbitrary rent increases and the conversion of residential buildings to commercial use, saying the ministry is developing modern tenancy legislation, a national rent registry, and stronger enforcement tools to protect tenants.
Industry stakeholders also weighed in at the event.
REDAN National President Akintoye Felix Adeoye called for closer collaboration among government, investors, and the private sector to speed up housing delivery and build sustainable communities.
NIESV President Bature Mohammed urged the government to strengthen property rights, land administration, and market data systems to attract large-scale investment, adding that the real challenge lies in moving from policy to implementation.
Lagos State to enforce 10% fees for real estate agents
Earlier, Legit.ng reported that as part of moves to regulate real estate in Lagos State, the state government has announced that it will enforce compliance with the law among players in the real estate sector.
There have been repeated complaints on social media about unfair practices among real estate agents and property owners in Lagos State.
Some of the issues raised in such complaints include ridiculously high agent fees, demand for more than one year's rent, indiscriminate increase of house rent, among others.
Source: Legit.ng
