The Minister of Housing and Urban Development, Engr. Muttaqha Rabe Darma, has announced plans to increase mortgage delivery in Nigeria to 5,000 alongside a proposed increase in the maximum mortgage loan from N50m to N85m by 2028.
The Minister disclosed this in his address at the opening of the meeting of states commissoiners under his Chairmanship at the 15th Meeting of the National Council on Lands, Housing and Urban Development in Sokoto.
Darma outlined the commitment of the Federal Government to reforming the housing finance system and expanding access to affordable homeownership for Nigerians.
He disclosed that 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.
He further announced a target of 2,000 mortgages for the current year, rising 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.
The Minister also disclosed 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.
Darma also highlighted the plan by the government 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 explained that the recently launched Diaspora Mortgage Programme would provide Nigerians living abroad with opportunities to invest in homeownership in their home country.
The Minister 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.
He 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 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 his keynote address, the 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 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.
