The Federal Government has directed the Federal Mortgage Bank of Nigeria (FMBN) to increase mortgage disbursements and raise its mortgage loan ceiling to ₦85 million as part of efforts to improve access to affordable housing and strengthen Nigeria’s housing finance system.
The Minister of Housing and Urban Development, Professor Muttaqha Rabe Darma, issued the directive while delivering the keynote address at the BusinessDay Real Estate Conference 2026 held in Abuja over the weekend.
According to a statement, the new directive is expected to enable the approval of at least 2,000 mortgages annually, while allowing contributors to the National Housing Fund (NHF) to access up to 25 per cent of their Retirement Savings Accounts (RSA) as equity contributions toward home ownership.
FG Moves to Address Nigeria’s Housing and Rent Crisis
As part of broader reforms in the housing sector, Darma said the ministry is developing new measures to tackle Nigeria’s worsening rental challenges.
The proposals include the establishment of a National Rent Registry, mandatory registration of large-scale landlords, stricter enforcement against the unlawful conversion of residential buildings, and the introduction of model tenancy legislation to ensure fairness for both landlords and tenants.
The minister also highlighted the ministry’s Land4Growth Initiative, the ongoing digitisation of land administration through the e-Certificate of Occupancy (e-C of O) programme, and the work of the National Housing Data Technical Committee.
According to the committee’s findings, Nigeria had an estimated housing deficit of about 15 million housing units as of 2025.
Renewed Hope Housing Programme Remains on Track
Reaffirming the Federal Government’s commitment to expanding affordable housing, Darma said implementation of the Renewed Hope Social Housing Programme remains on course.
He disclosed that the programme aims to deliver hundreds of housing units across each of Nigeria’s 774 local government areas, significantly increasing access to decent and affordable housing nationwide.
Stakeholders Invited to Shape Housing Reforms
The minister announced that the Ministry of Housing and Urban Development will commence formal stakeholder consultations this week on the proposed regulatory reforms.
He invited developers, investors, financial institutions, professional bodies, tenant associations and other stakeholders to contribute ideas that will strengthen Nigeria’s housing regulatory framework.
“The projects that will define Nigeria’s housing future are not yet built. The capital that will fund them is not yet fully mobilised. But the policy framework that will make them bankable, safe, and worth investing in is being written now. Come and help write it,” Darma said.
New Policy to Protect Homebuyers, Boost Investor Confidence
Darma said the ministry is finalising a National Housing and Built Environment Regulation Policy (NHBERP) aimed at improving transparency, accountability and investor confidence in Nigeria’s real estate sector.
He lamented that many Nigerians continue to lose their life savings to unlicensed property developers due to weak regulation and the absence of safeguards such as escrow arrangements for off-plan property transactions.
Despite the real estate sector contributing about 13.36 per cent to Nigeria’s Gross Domestic Product (GDP), the minister noted that inadequate regulation continues to discourage investment and expose homebuyers to fraud.
According to him, the proposed policy will introduce mandatory developer licensing, escrow protection for buyers’ funds, construction quality assurance mechanisms, professional registration requirements, and establish a National Housing Industry Data Observatory (NHIDO) to improve transparency across the sector.
He added that, under the proposed reforms, developers will no longer be allowed to market or sell off-plan housing projects without first obtaining the required licences and securing buyers’ funds in regulated escrow accounts.
The minister said the reforms are expected to align Nigeria’s housing market with international best practices while strengthening consumer protection, improving investor confidence and accelerating sustainable housing development across the country.
