The Federal Government plans to launch a N1 trillion ($654 million) housing fund to provide affordable mortgages for Nigerians.
Finance Minister Wale Edun announced the initiative during a media briefing, highlighting efforts to close the nation’s housing gap.
The first phase of the fund includes a 40-year concessional loan from the World Bank’s International Development Association at 1% interest.
Edun revealed that local pension funds, banks, and insurance firms contributed matching funds, raising N250 billion in the initial phase.
“This fund will enable Nigerians to access mortgages at single-digit and low double-digit interest rates,” Edun stated.
Nigeria’s Housing Crisis
Nigeria, Africa’s most populous country, faces a severe housing deficit, with most real estate transactions still conducted in cash.
Cash-based transactions have contributed to corruption, while mortgage financing remains below 1% of the country’s GDP.
The Federal Mortgage Bank of Nigeria estimates that 28 million additional homes are needed to meet the country’s housing demand.
The new fund is expected to stimulate housing construction by guaranteeing developers access to ready buyers, Edun noted.
Road Infrastructure Projects in the Pipeline
The government is also finalizing contracts with private investors to construct and manage 40 roads covering 5,000 kilometers.
The Africa Finance Corporation (AFC), a Lagos-based financial institution, is one of the key investors in this road infrastructure initiative.
Boost for Housing Finance
Last week, the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) closed its N250 billion pilot fundraising.
The N100 billion Series 2 issuance was fully subscribed, reflecting strong investor confidence in Nigeria’s housing finance sector.
This follows the initial N150 billion raised in Series 1, with Series 2 attracting significant private sector participation.
Edun emphasized that the fund’s success marks a turning point in Nigeria’s long-overdue housing sector transformation.
