Shun Loan Defaulters, Fraudulent Developers In Housing Projects, FG Urged

The Housing Development Advocacy Network (HDAN) has urged the Ministry of Finance Incorporated (MOFI) to prioritise transparency and professionalism in its housing initiatives, cautioning against partnerships with loan defaulters and fraudulent developers.

The advice was given during HDAN’s recent visit to MOFI, where the network expressed confidence in the Ministry’s readiness to address Nigeria’s housing deficit.

HDAN commended the federal government for its N250 million investment in tackling housing challenges, particularly through innovative financing mechanisms.

The organisation praised MOFI’s plans to leverage the capital market for funding large-scale housing projects, describing the approach as a long-overdue solution to the sector’s persistent challenges.

“We are happy that MOFI is ready to raise money from the capital market, which is one area that has not been tapped in Nigeria.

We are hopeful that from 2025, the sector will witness significant development in financing affordable housing and mortgages,” HDAN stated.

Despite its optimism, HDAN cautioned MOFI to learn from previous government housing experiments.

“Deal only with professionals and estate developers with excellent records of delivery and performance. Those with loan defaulting records must be totally avoided,” the network warned.

The executive director of HDAN, Festus Adebayo, emphasised the importance of collaboration with credible stakeholders to ensure the success of President Bola Ahmed Tinubu’s one million homes Initiative.

“We are pleased to observe that the Mortgage Bankers Association is already supporting MOFI. We call on honest estate developers to rally behind this transformative idea,” he said

Former chairman of the Federal Government Reform Committee on Land, Dr. Ugochukwu Chime,  highlighted the critical issue of land titling, describing it as a significant barrier to housing fund accessibility.

Similarly, Emmanuel Akinwumi, another stakeholder at the meeting, urged the government to review outdated housing and mortgage laws to enhance sector performance and support new initiatives.

MOFI’s plans include collaboration with key agencies such as Family Homes Funds Ltd. and the Federal Mortgage Bank of Nigeria.

The Ministry also pledged to support Primary Mortgage Institutions (PMIs) to improve their operational capacity in meeting the demand for affordable housing.

CEO of MOFI, Dr. Armstrong Takang, unveiled the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) as a cornerstone of the housing initiative.

The fund aims to integrate pension resources and other financial tools to provide affordable mortgage options, particularly for pension account holders.

“The MREIF will operate as a market-driven framework, fostering transparency and efficiency. This will strengthen the mortgage market and create sustainable pathways to homeownership,” Takang stated.

Key financial experts, including Dr. Oluwatoyin Madein, Accountant General of the Federation, and executives like Wale Odutola of ARM Pensions and Funmi Ekundayo of STC Trustees, have been engaged to ensure the fund’s success.

Their expertise will shape its structure and deployment, broadening homeownership opportunities across Nigeria.

HDAN expressed optimism about the initiative but reiterated its call for strict oversight to eliminate fraudulent practices.

“Transparency, professionalism, and collaboration with credible partners will determine the success of this effort,” the network concluded.

With the federal government, MOFI, and other key stakeholders working in unison, HDAN believes Nigeria is poised for a significant transformation in its housing sector.