The federal government has directed the Federal Mortgage Bank of Nigeria (FMBN) to channel at least 40% of annual National Housing Fund (NHF) contributions into mortgage financing, aiming to boost homeownership and address Nigeria's housing deficit. Housing Minister Mustapha Rabe Darma announced the directive on Thursday at a real estate conference in Abuja, also ordering the bank to increase annual mortgage disbursements from roughly 500 to at least 2,000.
New Mortgage Target and Regulatory Framework
Minister Darma stated the directive is intended to make affordable housing more accessible, deepen mortgage financing, and attract greater private sector participation. The ministry is finalizing a comprehensive regulatory framework for the housing and built environment sector, which will undergo stakeholder consultation before approval by the Federal Housing Council, according to BusinessDay. Key elements 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 emphasized a stakeholder-driven approach: "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."
Housing Deficit Estimate and Social Housing Scheme
The minister revealed that the ministry's National Housing Data Committee has produced 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 federal government will soon launch the Renewed Hope Social Housing Scheme, targeting 200 housing units per local government area across all 774 LGAs, with teachers, primary healthcare workers, and other vulnerable groups as primary beneficiaries.
Rent Concerns and Tenancy Reforms
Darma raised concern over rising rents in cities like Lagos, Abuja, and Port Harcourt, citing the National Bureau of Statistics' 2019 Living Standards Survey, which found about 49% of urban residents rent their homes. He condemned arbitrary rent increases and conversion of residential buildings to commercial use, stating the ministry is developing modern tenancy legislation, a national rent registry, and stronger enforcement tools to protect tenants.
Industry Stakeholder Reactions
Industry stakeholders 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.
