FG Plans N85m Mortgage Limit, 40% Allocation For Informal Workers
The Federal Government says it is proposing to increase the maximum mortgage loan from N50 million to N85 million to improve access to homeownership.
The Minister of Housing and Urban Development, Dr Muttaqha Rabe-Darma, disclosed this at the 15th National Council on Lands, Housing and Urban Development on Thursday in Sokoto.
He said: “The federal government is targeting 5,000 mortgages by 2028 and proposing to increase the maximum mortgage loan from N50 million to N85 million to improve access to homeownership.
“The federal government is 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 said the government was also targeting 2,000 mortgages in the current year, with the figure expected to rise to 5,000 by 2028.
According to him, the initiative is aimed at bridging the gap between workers’ contributions to the NHF and the actual delivery of housing finance.
Rabe-Darma also said that the government was targeting the allocation of between 30 and 40 per cent of mortgage bookings to informal-sector workers.
According to him, many of them face difficulties accessing formal housing finance because of irregular incomes and limited access to conventional lending arrangements.
He said the proposed reforms were designed to strengthen the housing finance system and ensure that more Nigerian workers benefit from their contributions to the NHF.
According to him, the federal government plans to establish a National Housing Finance Authority to strengthen regulation of the housing finance sector and expand access to affordable mortgages for Nigerians.
Rabe-Darma said the proposed authority would provide a coordinated regulatory framework, strengthen accountability and improve the overall performance of the country’s housing finance sector.
The minister also said the recently launched Diaspora Mortgage Programme would provide Nigerians living abroad with opportunities to invest in homeownership in their home country.
He emphasised that improving access to housing finance was critical to addressing Nigeria’s housing deficit, adding that efforts were underway to ensure construction of 100 housing units in each of the 774 local government areas across the country.
He further noted that sustainable housing delivery requires not only the construction of houses but also a functional mortgage system that enables citizens to acquire them.
Rabe-Darma cited Rwanda’s experience in expanding its mortgage market through institutional reforms and mortgage refinancing mechanisms, saying Nigeria could learn from countries that had taken deliberate steps to improve access to housing finance.
He reaffirmed the federal government’s commitment to implementing reforms that would make housing finance more accessible, particularly to low- and middle-income earners and workers in the informal sector.
The minister urged 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 remarks, Gov. Ahmad Aliyu said: “Housing goes beyond providing shelter, as it promotes human dignity, security, family stability and hope for the future.”
Aliyu highlighted some of the housing projects in the state to include the 500-unit Sokoto New City Housing Project and shelters for internally displaced persons (IDPs) being implemented in partnership with the United Nations Development Programme (UNDP).
He said the projects were aimed at providing affordable homes for low-income earners and vulnerable citizens.
In his goodwill message, the Chairman of the House of Representatives Committee on Urban Development and Regional Planning, Rep. Awaji-Inombek Abiante, identified key policy reforms needed to address Nigeria’s housing deficit.
Abiante called for single-digit interest rates on mortgage loans, a review of housing prices, transparent and efficient land registration processes, effective development control and the introduction of a National Housing Identification Number.
He also advocated the use of locally sourced building materials to reduce construction costs and improve access to affordable housing for Nigerians.
The Sultan of Sokoto, Alhaji Sa’ad Abubakar, emphasised the need for increased consideration for low-income earners in housing programmes and assured traditional rulers’ support for government policies and programmes.
The Genius Media Nigeria reports that the meeting brought together ministers, state commissioners for housing and heads of housing agencies across the federation to deliberate on and approve the report of the Permanent Secretaries’ meeting.
Resolutions adopted at the meeting are expected to serve as a working document for stakeholders in the built environment to accelerate inclusive housing delivery in Nigeria.
