The Federal Government has reaffirmed its commitment to addressing Nigeria’s critical housing deficit by championing innovation and collaboration in the mortgage sector.
At the 21st Mortgage Bankers and Brokers Conference held in Abuja during the weekend, the Minister of Housing and Urban Development, Arch. Ahmed Musa Dangiwa called for a renewed focus on partnerships and creative solutions to expand access to affordable housing loans for Nigerians.
Themed “Strengthening Public-Private Partnerships in Mortgage Banking to Achieve Sustainable Development Goals (SDGs)”, the conference highlighted the pivotal role of public-private collaboration in bridging the housing gap.
Speaking to an audience of industry stakeholders, Dangiwa outlined strategies to make housing finance more accessible, particularly to low- and middle-income earners.
One of the minister’s key proposals was the development of hybrid mortgage products to address the disparity between commercial mortgage rates—currently at 28%—and the subsidized rates of 6-7% offered by the Federal Mortgage Bank of Nigeria (FMBN).
“Through innovation and collaboration, we can create solutions that allow more Nigerians within the low- and middle-income brackets to access affordable housing loans. This requires intuition, innovation, and sacrifice,” Dangiwa emphasized.
The minister cited the Renew Hope Cities programme as a successful example of innovative financing. Under this initiative, profits from homes sold at commercial rates subsidize units reserved for low- and middle-income earners.
This cross-subsidy model, Dangiwa noted, demonstrates how sustainable financing mechanisms can drive affordability.
Additionally, Dangiwa stressed the need for reforms in regulatory frameworks, including advocating for the removal of the Central Bank of Nigeria’s single obligor limit, which caps the amount financial institutions can lend to a single borrower.
He also encouraged stakeholders to explore the newly launched Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund, which aims to channel capital market funds into the housing sector.
The conference showcased the mortgage sector’s shift toward technology-driven solutions.
The Managing Director of FMBN, Mr. Shehu Usman Osidi, detailed the bank’s progress in adopting advanced technologies like artificial intelligence, blockchain, and robotic process automation.
These innovations aim to streamline mortgage origination, underwriting, and loan servicing.
Osidi also revealed plans to digitize operations, including the near completion of FMBN’s Core Banking Application and the development of a digital registry to centralize mortgage records.
“These advancements will enhance transparency, improve efficiency, and simplify processes for both lenders and borrowers,” Osidi said.
The conference underscored the importance of public-private partnerships (PPPs) in achieving sustainable development.
Drawing from global insights, including lessons from the recent World Urban Forum in Cairo, Dangiwa advocated for climate-smart housing projects that align with the Sustainable Development Goals (SDGs).
Ebilate Mac-Yoroki, President of the Mortgage Bankers Association of Nigeria (MBAN), echoed this sentiment in his address.
He stressed the need for reforms in land administration, including amending the Land Use Act of 1978 introducing foreclosure laws, and automating land registries to foster transparency and efficiency.
“By fostering collaboration, promoting innovation, and addressing key challenges, mortgage banking can become a powerful force for sustainable development,” Mac-Yoroki stated.
Despite the mortgage banking sector’s current contribution of less than 0.5% to Nigeria’s GDP, the government and stakeholders remain optimistic about its potential to drive economic growth and social development.
The conference concluded with a call for collective action to reimagine housing finance through innovation, partnership, and technology.
“The time to act is now,” Minister Dangiwa declared.
“Together, we can transform this sector and build a better future for all Nigerians.”
The event concluded with a recognition ceremony honoring the contributions of industry pioneers, including Mr. Kayode Omotosho, the founding Executive Secretary and Chief Executive Officer of MBAN, for his enduring leadership and vision in shaping the sector.
