One of the major challenges facing Nigeria's property sector has always been in the area of affordable funding and financing of housing schemes for low and middle income earners in the country.
The world bank has put Nigeria's housing deficit at about 28 million with the Federal government projecting an annual funding of N5 trillion to bridge the gap.
Subsequently, at the just concluded Africa International Housing Show (AIHS 2025), the Federal government and experts agree that although there has been housing schemes rolled out by the Federal government, it his high time states key into the Scheme as well as provide single digit loans among other initiatives for low and middle income earners.
Housing schemes by subnationals
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A critical issue at the front burner was the urgent need for subnationals to develop affordable housing schemes at the subnational level.
Subsequently, the Federal Government directed the Federal Mortgage Bank of Nigeria (FMBN) to work with state governors on bankable projects under the Renewed Hope housing campaign to expand homeownership and reduce the nation's housing deficit.
Minister of Housing and Urban Development, Arc. Ahmed Dangiwa explained that the collaboration is intended to bring housing solutions directly to citizens by bridging the gap between federal policy and state-level implementation.
"I am directing FMBN to participate actively in this campaign, alongside other federal housing institutions.
This is an opportunity for the Bank to showcase its products in every state of the federation.
"Work closely with governors to unlock land and structure bankable housing projects, embed technical support teams to help states design viable homeownership roadmaps."
The minister noted that while government efforts are increasing the supply of housing units nationwide, affordability remains the biggest obstacle to homeownership. Even where houses are available, their prices are beyond the reach of low- and middle-income earners, leaving millions without decent accommodation.
To tackle this, Dangiwa urged FMBN to bring the National Housing Fund closer to contributors, expand its reach, and raise awareness of its mortgage products. He also called for simpler processes and stronger partnerships with other federal housing agencies to make financing more accessible. He described FMBN as the government's key instrument for affordable mortgages and a central player in the Renewed Hope housing campaign.
Single digit mortgage loans
The Federal Mortgage Bank of Nigeria and experts in the housing sector also agreed that a more sustainable financing to boost housing delivery in Nigeria will be single digit mortgage loans for citizens
FMBN MD, Shehu Usman Osidi announced that the FMBN is now offering mortgage loans at single per cent while also announcing the launch of a Diaspora Mortgage Loan targeted at providing a safe and seamless homeownership pathway for Nigerians living abroad.
Osidi said the new product is part of the bank's commitment to expanding access to affordable housing through innovative and inclusive financing models.
"We are also launching the Diaspora Mortgage Loan, specially designed to provide a safe and seamless homeownership pathway for Nigerians living abroad," he said.
Osidi said the product would remove barriers that many Nigerians in the diaspora face in securing homes in the country.
He noted that starting from August, the bank will roll out several groundbreaking products, including the FMBN Non-Interest Mortgage Loan, which aligns with ethical financing principles, and the Rent Assistance Product, tailored to support National Housing Fund (NHF) contributors in both formal and informal sectors with short-term rental needs while working towards homeownership.
According to Osidi, the products are anchored on a broader strategy to deepen financial inclusion and dismantle systemic obstacles to homeownership in Nigeria.
He added that while the bank has earned recognition for delivering on its mandate, stronger collaboration with stakeholders remains key to scale up mortgage financing
Similarly, the Ministry of Finance Incorporated (MOFI) have revealed that Nigerians have started accessing affordable long-term mortgage facilities at 9.75 per cent.
The mortgage facilities extend as long as 20 years, a radical initiative aimed at bridging the country's estimated 20 million units housing gap.
Chief Executive Officer, (MOFI), Dr. Armstrong Takang, affirmed that several beneficiaries across geopolitical zones have successfully accessed the single-digit, long-term mortgage fund, barely one month after it was launched.
He explained that the newly established MOFI Real Estate Investment Fund (MREIF), a Securities and Exchange Commission (SEC)-regulated housing fund designed to strengthen Nigeria's housing finance sector, radically redefining the housing sector.
He stated that MREIF was designed to hedge against liquidity challenges, corporate governance issues, accessibility barriers, and the perennial challenge of sustaining initiatives for the long-term.
Construction Initiative for women
In the same vein, the FMBN says it is rolling out a housing initiative with the delivery process to be exclusively undertaken by women.
The FMBN MD disclosed that the Women Housing Initiative to be executed in collaboration with the Federal Ministry of Women Affairs is aimed at promoting gender inclusivity in Nigeria's housing sector.
He added that the pioneering scheme would ensure that everybody involved in delivering the housing projects would be women.
"We believe that women represent a very substantial part of this country and they have a lot of contributions to make to national development.
"So, the Women in Housing Initiative aims to provide a housing development model, where from the design architects to the engineers to the artisans and to the labourers, everybody on site will be women, " he said.
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Osidi disclosed that the bank witnessed a major, positive shift in its challenge on the Single Obligor Limit requirement by the Central Bank of Nigeria.
Why states must key into housing - Experts
Meanwhile, Alhaji Aliko Dangote while speaking called on stakeholders in the housing industry to support budget-friendly mass housing schemes and urged subnationals to key into government schemes as federal government can't do it alone
Represented by the National Sales Director, Dangote Cement Plc, Dolapo Alli, alos emphasised the need for collaboration among government agencies, private developers, non-profits, and communities to address the country's housing challenges.
He said. "The government at subnational levels can adopt PPP models to initiate the construction of new estates, while companies and firms in the building and construction sector can be granted tax waivers and credits to facilitate the financing of new and affordable housing developments," he said.
Also speaking, the convener of AIHS and Executive Director of Housing Development Advocacy Network Barr. Festus Adebayo noted that the role of Public Private partnership cannot be overemphasized especially for providing affordable housing for citizens at the grassroots.
"We convened AIHS annually today bring together public and private sector players in the housing sector to brainstorm on viable means of housing financing for low and middle income earners especially at subnationals because it is time for states to key in,"
