FG orders FMBN to channel 40% of NHF funds into mortgages, targets 2,000 loans yearly

The federal government has directed the Federal Mortgage Bank of Nigeria (FMBN) to allocate at least 40% of annual National Housing Fund (NHF) contributions to mortgage financing. Housing Minister Mustapha Rabe Darma announced the directive on Thursday at a real estate conference in Abuja.

The minister also instructed the bank to increase annual mortgage disbursements from roughly 500 to at least 2,000. Darma said the move is aimed at making affordable housing more accessible, deepening mortgage financing, and drawing greater private sector participation into the housing industry.

New regulatory framework in the works

Darma disclosed that his ministry is putting the finishing touches on a comprehensive regulatory framework for the housing and built environment sector. The framework will be opened to stakeholder consultation before the Federal Housing Council considers it for approval.

Key elements of the framework include developer licensing, escrow protection for homebuyers' funds, tighter construction quality control, professional registration, land value capture, urban renewal initiatives, land readjustment programmes, and the creation of a National Housing Industry Data Observatory.

Darma said: "We want these policies to be driven by stakeholders rather than imposed from above. That is why we are opening them for extensive consultation before adoption."

Housing deficit now estimated at 14.9 million units

The minister revealed that the ministry's National Housing Data Committee has produced what he described as Nigeria's most credible estimate of the housing deficit, placing it at 14.9 million units. An additional 14 million Nigerians are living in substandard conditions.

Darma also announced that the federal government would soon launch the Renewed Hope Social Housing Scheme. The scheme targets the delivery of 200 housing units per local government area across all 774 LGAs. Teachers, primary healthcare workers, and other vulnerable groups are the primary beneficiaries.

Rent concerns and tenant protection

On rent, Darma raised concern over rising costs in cities such as Lagos, Abuja, and Port Harcourt. He referenced the National Bureau of Statistics' 2019 Living Standards Survey, which found that about 49% of urban residents rent their homes.

He condemned arbitrary rent increases and the conversion of residential buildings to commercial use. The minister said the ministry is developing modern tenancy legislation, a national rent registry, and stronger enforcement tools to protect tenants.

Industry stakeholders call for action

Industry stakeholders also weighed in at the event. REDAN National President Akintoye Felix Adeoye called for closer collaboration among government, investors, and the private sector to speed up housing delivery and build sustainable communities.

NIESV President Bature Mohammed urged the government to strengthen property rights, land administration, and market data systems to attract large-scale investment. He added that the real challenge lies in moving from policy to implementation.

For the naira and Nigerian businesses, a functional mortgage system could unlock significant value in the housing sector, stimulate construction activity, and create jobs. But success depends on execution, not just announcements.