By Kazeem Waris
The Federal Government has set a target of 5,000 mortgage disbursements by 2028 and proposed raising the maximum housing loan from ₦50 million to ₦85 million in a fresh push to expand access to affordable homeownership in Nigeria.
The Minister of Housing and Urban Development, Engr. Dr. Muttaqha Rabe Darma, announced the proposed reforms at the opening session of the meeting of state commissioners during the 15th National Council on Lands, Housing and Urban Development in Sokoto.
Darma said the government was working to overhaul Nigeria’s housing finance system, strengthen mortgage delivery and make homeownership more accessible, particularly to low- and middle-income earners struggling with rising construction costs and limited access to credit.
As part of the reforms, he said the Federal Mortgage Bank of Nigeria (FMBN) had been directed to channel at least 70 per cent of the previous year’s National Housing Fund (NHF) contributions into mortgage facilities annually.
The measure, according to him, is intended to ensure that Nigerian workers derive tangible benefits from their contributions to the housing fund.
The minister disclosed that the government was targeting 2,000 mortgage disbursements in the current year, with plans to increase the figure to 5,000 by 2028.
He said the initiative was designed to bridge the gap between contributions made by workers to the NHF and their access to housing finance, which remains a major barrier to homeownership.
In a further move to extend mortgage access beyond the formal employment sector, Darma said the government was targeting between 30 and 40 per cent of mortgage bookings for informal-sector workers.
Many of these workers, he noted, have struggled to access conventional housing finance because of irregular incomes and the absence of standardised lending arrangements.
“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,” he said.
Darma also announced plans to establish a National Housing Finance Authority to provide a coordinated regulatory framework, strengthen institutional accountability and improve the performance of the housing finance sector.
He said the recently launched Diaspora Mortgage Programme would also enable Nigerians living abroad to invest in homeownership in the country, potentially expanding the funds available for housing development.
The minister stressed that tackling Nigeria’s housing deficit required more than constructing residential buildings without ensuring that citizens could afford to buy them.
He cited Rwanda’s experience in expanding mortgage access through institutional reforms and refinancing mechanisms, saying Nigeria could draw lessons from countries that had strengthened their housing finance systems.
Darma reaffirmed the Federal Government’s commitment to reforms aimed at improving access to housing credit for vulnerable households and underserved workers.
In his keynote address, Sokoto State Governor Ahmed Aliyu Sokoto described housing as a fundamental pillar of human dignity, personal security, family stability and social development, rather than merely a physical structure.
The governor highlighted the state government’s 500-unit Sokoto New City Housing Project and its partnership with the United Nations on shelter for internally displaced persons (IDPs), describing the initiatives as efforts to provide affordable accommodation for low-income earners and vulnerable citizens.
Similarly, the Chairman of the House of Representatives Committee on Urban Development and Regional Planning, Hon. Awaji-Inombek Abiante, called for comprehensive policy reforms to address Nigeria’s housing challenges.
Abiante advocated single-digit interest rates on housing loans, a review of house prices, transparent land registration procedures and effective development control.
He also proposed a National Housing Identification Number and greater use of locally sourced building materials to reduce construction costs and improve affordability.
The 15th National Council meeting brought together the federal minister and minister of state responsible for housing, state commissioners for housing and heads of housing agencies across the federation.
As the council’s highest decision-making body, the meeting is expected to consider and approve reports from the Permanent Secretaries’ meeting, with its resolutions providing a framework for coordinated policy implementation across the built environment.
However, the impact of the proposed reforms will depend on effective implementation, transparent management of housing funds and the ability of mortgage facilities to meet the financial realities of ordinary Nigerians.
