The Minister of Housing and Urban Development, Ahmed Dangiwa, has announced that the Nigerian government aims to reduce mortgage interest rates to 12% as part of its efforts to make homeownership more accessible to Nigerians.
Speaking at the Saudi Arabia Real Estate Forum, Dangiwa highlighted the enormous opportunities in Nigeria’s real estate sector, particularly within the government’s Renewed Hope Cities and Estates Programme.
Dangiwa stressed the urgent need for housing in Nigeria, where the housing deficit is estimated at 28 million units, and urged international investors to partner with the government in addressing the shortfall. He also noted that the real estate sector contributed 5.2% to Nigeria’s GDP in 2024, with projections indicating that the market will reach N2.25 trillion by the end of 2025.
Historically, high mortgage interest rates, ranging from 28% to 30%, have made homeownership unaffordable for many Nigerians. To combat this, Dangiwa revealed plans to introduce a Real Estate Investment Fund offering lower mortgage interest rates, including a 12% rate. Additionally, the government is expanding and recapitalising the Federal Mortgage Bank of Nigeria with N500 billion to offer more accessible mortgage products.
The minister also announced the introduction of rent-to-own schemes, which would allow applicants to pay rent in installments instead of upfront payments. He emphasized that the government is working to strike a balance between profitability for developers and affordability for buyers through incentives like off-take guarantees, land access, and low-interest financing.
On sustainability, Dangiwa outlined efforts to incorporate green building practices into Nigeria’s housing development through partnerships with international organizations like the International Finance Corporation. He also revealed plans to establish building materials manufacturing hubs across Nigeria’s six geopolitical zones, aiming to reduce reliance on imported materials, cut costs, and create jobs.
Dangiwa reaffirmed the government’s commitment to fostering a thriving real estate sector through strong policies, regulatory frameworks, and investment incentives, while collaborating with state governments and the Nigeria Governors’ Forum to streamline land access and improve urban planning.
