The Federal Government has proposed increasing the maximum mortgage loan from ₦50 million to ₦85 million to improve access to homeownership.
The Minister of Housing and Urban Development, Muttaqha Rabe-Darma, disclosed this on Thursday at the 15th National Council on Lands, Housing and Urban Development in Sokoto.
He said the government was targeting 2,000 mortgages this year and 5,000 by 2028 as part of efforts to expand access to housing finance.
“The federal government is targeting 5,000 mortgages by 2028 and proposing to increase the maximum mortgage loan from N50 million to N85 million to improve access to homeownership.
“The federal government is directing the Federal Mortgage Bank of Nigeria (FMBN) to increase mortgage disbursements, with a target of disbursing at least 70 per cent of the previous year’s National Housing Fund (NHF) contributions through mortgages annually.”
Rabe-Darma said the initiative was aimed at bridging the gap between workers’ contributions to the NHF and the actual delivery of housing finance.
He added that the government was targeting between 30 and 40 per cent of mortgage bookings for informal-sector workers, many of whom struggle to access conventional housing finance because of irregular incomes and limited lending options.
The minister said the government also planned to establish a National Housing Finance Authority to strengthen regulation, improve accountability and expand access to affordable mortgages.
He said the recently launched Diaspora Mortgage Programme would give Nigerians living abroad opportunities to invest in homes in the country.
Rabe-Darma added that efforts were underway to construct 100 housing units in each of Nigeria’s 774 local government areas, stressing that sustainable housing delivery required both the construction of homes and a functional mortgage system.
Citing Rwanda’s experience in expanding its mortgage market through institutional reforms and refinancing mechanisms, he said Nigeria could learn from countries that had taken deliberate steps to improve access to housing finance.
He urged relevant institutions and stakeholders to support the proposed reforms, noting that effective implementation, transparency and accountability would be essential to achieving the government’s housing objectives.
In his remarks, Sokoto State Governor Ahmad Aliyu said housing went beyond providing shelter, as it promoted human dignity, security, family stability and hope for the future.
Aliyu highlighted the state’s 500-unit Sokoto New City Housing Project and shelters for internally displaced persons being implemented in partnership with the United Nations Development Programme.
He said the projects were intended to provide affordable homes for low-income earners and vulnerable citizens.
The Chairman of the House of Representatives Committee on Urban Development and Regional Planning, Awaji-Inombek Abiante, called for single-digit mortgage interest rates, a review of housing prices, transparent land registration processes, effective development control and the introduction of a National Housing Identification Number.
He also advocated the use of locally sourced building materials to reduce construction costs and make housing more affordable.
The Sultan of Sokoto, Sa’ad Abubakar, called for greater consideration of low-income earners in housing programmes and pledged the support of traditional rulers for government policies and initiatives.
The meeting brought together ministers, state commissioners for housing and heads of housing agencies to deliberate on and approve the report of the Permanent Secretaries’ meeting.
Resolutions from the meeting are expected to guide stakeholders in the built environment in accelerating inclusive housing delivery across Nigeria.
