Federal Govt Targets 5,000 Mortgages Annually By 2028 – Minister

The federal government has set a target of delivering 5,000 mortgages annually by 2028 as part of efforts to expand access to affordable housing across the country.

The minister of Housing and Urban Development, Muttaqha Darma, disclosed this recently in Kano during the launch of the Federal Mortgage Bank of Nigeria’s non-interest mortgage product, known as Ijarah Muntahia Bittamleek (lease-to-own).

Darma said the target was part of the National Mortgage Industry Policy issued by the ministry in July 2026 to reform the country’s mortgage system and improve access to homeownership.

He explained that the policy also required the FMBN to deliver 2,000 mortgages in 2026, disburse at least 40 per cent of annual National Housing Fund collections as mortgages and increase its maximum loan limit from N50m to N85m.

According to him, the bank is also expected to process mortgage applications within 30 working days through a simplified eight-document application process.

The minister said the policy further seeks to increase NHF membership from over six million contributors to 10 million by 2028, with between 30 and 40 per cent of mortgage bookings reserved for informal-sector workers, including traders, artisans and transport operators.

He said the newly introduced non-interest mortgage product would provide an additional opportunity for Nigerians who had stayed away from conventional interest-based housing loans to become homeowners.

“Under the arrangement, eligible NHF contributors occupy houses through a lease agreement and make agreed rental payments over a specified period before ownership is transferred to them.”

Darma stressed that the product was open to all eligible Nigerians, irrespective of religious beliefs, describing it as part of the government’s broader efforts to make housing finance more inclusive.

He added that the government had validated a national housing deficit of 15 million units in collaboration with 19 states and eight professional bodies.

Earlier, the Managing Director of FMBN, Shehu Osidi, said the bank had selected a housing project in Bichi, Kano State, for the pilot implementation of the non-interest mortgage scheme.

Osidi said the initiative aimed to broaden participation in the mortgage market and provide alternative financing opportunities for Nigerians.

The Kano State Government, represented by the Commissioner for Housing Development, Ibrahim Yakubu, described the initiative as a significant development that would improve access to affordable housing and help address the state’s housing deficit.