The Federal Government of Nigeria has unveiled a proposal to create a National Housing Finance Authority (NHFA), a new agency aimed at expanding mortgage access and tackling the nation's housing deficit. According to a statement from the Ministry of Housing and Urban Development, the NHFA will consolidate existing housing finance mechanisms and provide affordable long-term funding for homebuyers.
Addressing the Housing Gap
Nigeria faces a housing deficit estimated at over 22 million units, with less than 5% of the population having access to formal mortgage financing. The proposed authority seeks to bridge this gap by offering lower interest rates and extended repayment periods. “This initiative will transform the housing sector by making mortgages accessible to millions of Nigerians who currently rely on informal savings or family support,” said the Minister of Housing and Urban Development, Ahmed Dangiwa.
Key Features of the NHFA
The NHFA will be empowered to raise funds through bonds and development finance, partner with commercial banks, and provide guarantees to lenders. It will also establish a secondary mortgage market to increase liquidity. The authority is expected to reduce the average mortgage interest rate from current double-digit levels to single digits over the next five years.
Industry Reactions
Real estate stakeholders have welcomed the proposal. The President of the Nigerian Real Estate Developers Association, Mr. Bamidele Ogunleye, noted: “A dedicated housing finance authority is long overdue. It will unlock investment and create jobs across the value chain.” Critics, however, caution that past government housing schemes have faced implementation challenges, stressing the need for strong governance and private sector involvement.
Next Steps
The proposal will be submitted to the National Assembly for legislative action. If passed, the NHFA could become operational within 18 months. The government estimates it will help finance at least 500,000 new homes annually, significantly reducing the housing deficit over the next decade.
