***To establish National Housing Finance Authority

The Minister of Housing and Urban Development, Muttaqha Rabe Darma, has announced strategic plans to increase mortgage delivery in Nigeria to 5,000 alongside a proposed increase in the maximum mortgage loan from ₦50 million to ₦85 million by 2028.

Darma disclosed this development in his address at the opening of the meeting of states commissioners under his Chairmanship at the 15th Meeting of the National Council on Lands, Housing and Urban Development in Sokoto.

He outlined that this is the commitment of the Federal Government to reforming the housing finance system and expanding access to affordable homeownership for Nigerians.

“The Federal Government was 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.”

The Minister hinted that the government announcing the target of 2,000 mortgages for the current year, will rise to 5,000 by 2028, as part of efforts to bridge the gap between workers’ contributions to the National Housing Fund and the actual delivery of housing finance.

Darma therefore explained that the government was targeting the allocation of between 30 and 40 per cent of mortgage bookings to informal-sector workers, many of whom have historically faced challenges accessing formal housing finance due to irregular income and limited access to conventional 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 added

He declared: the highlight of the plan by the government is to establish a National Housing Finance Authority to provide a more coordinated regulatory framework, strengthen accountability and improve the overall performance of Nigeria’s housing finance sector.

He further explained that the recently launched Diaspora Mortgage Programme would provide Nigerians living abroad with opportunities to invest in homeownership in their home country.

Similarly, he emphasised that improving access to housing finance remains critical to addressing Nigeria’s housing deficit, noting that sustainable housing delivery requires not only the construction of houses but also a functional mortgage system that enables citizens to acquire them.

Housing Minister cited Rwanda’s experience in expanding its mortgage market through institutional reforms and mortgage refinancing mechanisms, noting that Nigeria could draw valuable lessons from countries that have made deliberate efforts to improve access to housing finance.

Darma reaffirmed determination of the Federal Government to implement reforms that would make housing finance more accessible, particularly to low- and middle-income earners and workers in the informal sector.

He however called on relevant institutions and stakeholders to support the reforms, stressing that effective implementation, transparency and accountability would be essential to achieving the government’s housing delivery objectives.

In a keynote address, Governor of Sokoto State, Ahmad Aliyu Sokoto, emphasised that housing is more than just shelter, as it promotes human dignity, security, family stability and hope for the future.

He equally highlighted some of the ongoing projects like the 500-unit Sokoto New City Housing Project, and the IDP shelter being implemented in partnership with the United Nations to provide affordable homes for low-income earners and vulnerable citizens.

Also, the Chairman of the House Committee on Urban Development and Regional Planning, Hon. Awaji-Inombek Abiante, identified key policy reforms needed to address Nigeria’s housing deficit.

They include the provision of single-digit interest loans, a review of housing prices, transparent and efficient land registration processes, effective development control, the introduction of a National Housing Identification Number, and the promotion of locally sourced building materials to reduce construction costs and improve access to affordable housing for Nigerians.

The meeting of the Minister , Minister of state and Commissioners of Housing and Heads of housing agencies from the all states of the federation is the highest body of the council to deliberate and approve the report of the Permanent Secretaries’ meeting.

The resolution adopted at the end of the meeting will provide a working document for implementation of stakeholders in the built environment for accelerated and inclusive housing delivery in Nigeria.