Dangiwa Urges Innovation In Affordanle Mortgage Finance, Charges FMBN To Scale Impact.
The Honourable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, has called for bold, innovative solutions to tackle the affordability challenge in Nigeria’s housing market, emphasizing that millions of Nigerians still cannot access homeownership despite existing concessional mortgage products.
Speaking at the Federal Mortgage Bank of Nigeria (FMBN) Day during the 19th Africa International Housing Show in Abuja, the Minister described affordability as the biggest barrier to homeownership, even in cases where housing units are available.
He noted that while FMBN provides single-digit interest rate mortgages at 6% per annum, with tenors of up to 30 years and flexible repayment structures under the National Housing Fund (NHF) Scheme, many Nigerians, including long-standing NHF contributors, remain unable to access these products.
“This is a reality we must face boldly. It requires fresh ideas, new partnerships, and innovative financing solutions beyond what we have done in the past,” Arc. Dangiwa said.
The Minister commended FMBN’s recent milestones, including the provision of mortgages, rent-to-own products, home renovation loans, delivery of housing units, digital service improvements, and NHF refunds, but stressed that “progress is not the destination; it is the foundation to build upon.”
Highlighting the Bank’s statutory mandate under the FMBN Act of 1993 to provide long-term credit to mortgage institutions, regulate the mortgage market, and administer the NHF sustainably, Dangiwa charged the Bank to intensify its efforts to make mortgages truly affordable for all Nigerians.
He proposed additional measures to scale impact, including:
• Government-backed subsidies or interest buy-downs to further reduce mortgage rates.
• Flexible, income-based repayment models tailored to household realities.
• Stronger partnerships with development finance institutions and capital markets to mobilize cheaper, long-term funds.
• Specialized mortgage products for informal sector workers, who make up a significant portion of the population.
Arc. Dangiwa also stressed the need for a nationwide awareness campaign to ensure that all NHF contributors understand and access their entitlements.
He directed FMBN to play an active role in the planned Renewed Hope State-by-State Homeownership and Housing Development Campaign, working closely with governors to unlock land, structure bankable projects, and bring homeownership opportunities closer to citizens.
“FMBN remains our strongest instrument for delivering affordable mortgage finance in Nigeria. Its mandate is clear, its progress commendable, but the affordability challenge is far from solved. We must push harder, innovate more, and stay focused on ensuring every hardworking Nigerian has a fair and realistic chance to own a home,” he stated.
The Minister reaffirmed the Federal Government’s commitment under President Bola Ahmed Tinubu’s Renewed Hope Agenda for Housing and Urban Development to provide the enabling policies, reforms, and institutional support needed to strengthen FMBN as the backbone of Nigeria’s affordable housing finance system.
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