FG Targets 5,000 Mortgages, N85m Loan Ceiling by 2028

The federal government has unveiled plans to expand mortgage delivery to 5,000 by 2028 and raise the maximum housing loan from N50 million to N85 million, in a major proposed reform aimed at widening access to homeownership amid Nigeria’s persistent housing crisis.

The minister of Housing and Urban Development, Dr Muttaqha Rabe Darma, disclosed this at the 15th Meeting of the National Council on Lands, Housing and Urban Development in Sokoto, where he announced plans to overhaul housing finance and ensure that more Nigerians benefit from the National Housing Fund (NHF).

Under the proposed reforms, the Federal Mortgage Bank of Nigeria (FMBN) is expected to deliver 2,000 mortgages in 2026, with the target rising to 5,000 by 2028. The bank is also being directed to disburse at least 70 per cent of the previous year’s NHF contributions through mortgage facilities annually, in a move designed to bridge the gap between workers’ contributions and access to housing finance.

Darma said the government was also targeting the allocation of between 30 and 40 per cent of mortgage bookings to informal-sector workers, many of whom have remained excluded from conventional housing finance because of irregular incomes and lending requirements that make it difficult to secure home loans.

The minister further disclosed plans to establish a National Housing Finance Authority to strengthen coordination, accountability and regulation in the housing finance sector. He said the recently launched Diaspora Mortgage Programme would also enable Nigerians living abroad to invest in homeownership in the country.

He stressed that tackling Nigeria’s housing deficit required more than constructing residential estates, arguing that a functional mortgage system was essential to enable ordinary citizens to purchase completed homes. He cited Rwanda’s experience with mortgage refinancing and institutional reforms as an example Nigeria could learn from in expanding housing finance.

At the meeting, Sokoto State Governor Ahmad Aliyu Sokoto said housing remained central to human dignity, personal security and family stability. He highlighted the state’s 500-unit Sokoto New City Housing Project and an initiative to provide shelter for internally displaced persons in partnership with the United Nations, particularly targeting vulnerable citizens and low-income earners.

Similarly, the Chairman of the House of Representatives Committee on Urban Development and Regional Planning, Hon. Awaji-Inombek Abiante, called for far-reaching policy changes to make homeownership more affordable. His recommendations included single-digit interest rates on housing loans, a review of house prices, transparent land registration, stronger development control and the introduction of a National Housing Identification Number.

Abiante also advocated greater use of locally sourced building materials to reduce construction costs and improve affordability, stressing that housing delivery would remain difficult without reforms that address the financial and structural barriers confronting prospective homeowners.

The meeting brought together the housing minister, the Minister of State, commissioners responsible for housing across the states and heads of housing agencies to consider and approve resolutions from the Permanent Secretaries’ meeting. The council’s decisions are expected to guide stakeholders in the built environment towards accelerating housing delivery and improving access to affordable homes nationwide.