REDAN Seeks New Housing Finance Models

The Real Estate Developers Association of Nigeria (REDAN) has called for stronger blended finance structures to increase investment in Nigeria’s housing and infrastructure sectors.

REDAN President, Oba Akintoye Adeoye, made the call at the 2026 Africa Environmental, Social and Governance (ESG) Conference and Exhibition in Lagos.

John Saka, Executive Secretary and Business Development Specialist at REDAN’s national secretariat, disclosed this in a statement issued on Thursday in Abuja.

Adeoye said Nigeria’s housing and infrastructure needs require more than traditional sources of funding. He called for closer cooperation among government, developers, mortgage institutions, commercial banks and development finance institutions.

He also identified institutional investors and other sources of capital as important partners in expanding housing investment.

Blended Finance Could Support Housing Investment

Blended finance combines public, private and development-focused funds to reduce investment risks. It can also help attract private capital to projects that may face funding challenges under normal commercial terms.

Adeoye said this approach could help developers finance more housing projects while improving affordability for Nigerians.

He urged REDAN and the Mortgage Banking Association of Nigeria (MBAN) to promote financing models that support sustainable and affordable housing.

According to him, stronger links between developers and financial institutions could create better conditions for long-term investment in the sector.

The issue is important because housing projects often require significant upfront capital. Developers also need access to financing that matches the long development periods of housing and infrastructure projects.

Better financing structures could therefore support projects that might struggle to secure funding through conventional commercial loans alone.

REDAN Pushes Green Innovation

Adeoye also urged real estate developers to adopt more green technologies and sustainable construction practices.

He said developers could improve efficiency and long-term value through energy-efficient buildings, renewable energy and sustainable construction materials.

He also highlighted water efficiency, waste management, climate-resilient infrastructure and smart technologies as areas with room for greater innovation.

Adeoye said developers should view sustainable real estate as an investment rather than simply an additional cost.

Energy-efficient buildings can reduce operating expenses over time. Sustainable materials and better resource management can also improve building performance and the experience of occupants.

For Nigeria’s housing industry, the shift towards sustainable development could also support buildings that are better prepared for environmental and climate-related pressures.

Governance Remains Critical

The REDAN president also stressed the need for stronger governance across the real estate sector.

He identified transparency, accountability, ethical business practices and responsible leadership as key elements of a credible property market.

Adeoye said good governance can strengthen consumer confidence and improve investor trust. It can also support access to finance and improve the credibility of real estate businesses.

Strong governance remains important to both developers and consumers. Clear business practices can help protect buyers while creating greater confidence among financial institutions and investors.

ESG Conference Focuses on Practical Solutions

The 2026 Africa ESG Conference and Exhibition focused on the theme, “ESG as a Competitive Advantage: Blended Finance, Green Innovation, and Governance for Nigeria’s Real Estate Future.”

REDAN and the Mortgage Banking Association of Nigeria jointly organised the conference. The Nigeria Mega Project Expo 2026 partnered with both organisations for the event.

The conference provided a platform for stakeholders to discuss how environmental, social and governance principles can influence Nigeria’s real estate sector.

Adeoye urged participants to move beyond discussions and focus on practical solutions and partnerships.

For Nigeria’s housing market, the discussion highlights the close link between finance, sustainability and good governance. Expanding access to suitable funding, encouraging efficient building practices and improving industry standards can help create stronger conditions for housing and infrastructure investment.

The wider significance lies in bringing developers, lenders, government agencies and investors closer together. Such cooperation can help the sector develop financing models and business practices that support a more sustainable and accessible real estate market.

The post REDAN Urges Blended Finance to Unlock Nigeria’s Housing Potential appeared first on Housing TV Africa.

The African Union Housing Forum (AUHF) and the Centre for Affordable Housing Finance in Africa (CAHF) have convened a joint conference in Benin to explore how blended finance can accelerate affordable housing development across Francophone Africa.

The conference, themed “Blended Finance to Promote Affordable Housing in Francophone Africa”, brings together governments, private investors, and development finance institutions (DFIs) to discuss strategies for mobilising investment in the continent’s housing sector.

Blended finance, which combines concessional funding with commercial capital, has emerged as a key tool for financing development projects in social sectors. However, its application in housing remains limited.

According to CAHF, one of the main challenges in affordable housing financing is the complexity of local markets. “Risks are often poorly understood or mispriced, and returns can be long-term and uncertain,” the organisation noted.

“Limited data and a shortage of pipeline-ready projects discourage private investment, while misaligned policies reduce the effectiveness of public and philanthropic capital in de-risking deals.”

The report highlights the need for coordination across sectors such as land, infrastructure, and finance, noting that informality in housing markets is often not accommodated in investors’ expectations.

In response to these challenges, CAHF, in partnership with Convergence, has developed a blended finance playbook tailored for Africa’s affordable housing sector. The report, which is available in both English and French, provides a structured framework for setting objectives, addressing market preconditions, and designing financing solutions that balance financial sustainability with development impact.

The playbook includes practical case studies showing how concessional capital can be deployed to mobilise private investment and advance pipeline-ready housing projects.

“The Benin conference provides an essential platform to translate these insights into practical actions for Francophone markets,” CAHF said. “It allows stakeholders to discuss how blended finance mechanisms can be adapted, structured, and scaled to close Africa’s housing gap.”

The event is expected to foster dialogue among policymakers, investors, and housing developers, focusing on innovative solutions to the continent’s housing challenges. Participants will explore opportunities for public-private collaboration, institutional innovation, and improved data collection to attract investment.

CAHF also reflected on its ten-year impact in Africa’s housing sector, emphasising the need for continued engagement to develop functional residential property markets.

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Nigeria’s real estate market is entering 2026 on the back of a quiet but decisive structural reset, as financing innovation, energy-conscious developments, and data-driven planning begin to replace speculation-driven growth that defined previous cycles.

Industry analysts say the shifts that gathered momentum in 2025 are no longer experimental. Instead, they are shaping how homes will be financed, built, priced, and governed in the coming year.

At the centre of this transformation is blended finance, an approach increasingly viewed as the most viable response to Nigeria’s chronic housing affordability crisis.

Blended Finance Redefines Mortgage Access

Blended finance combines lower-cost public or institutional capital with commercial lending to reduce mortgage interest rates and expand access to homeownership. In a market where mortgage penetration remains below one per cent of GDP, the model is gaining traction among policymakers, lenders, and developers.

Olugbenga Alamu, Chief Operating Officer of QShelter Limited, explained that blending subsidised government funds with pension-backed capital, private equity, and commercial loans can significantly lower borrowing costs for homebuyers.

Recent examples include the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), where mortgage rates have dropped to 9.75 per cent from an initial 12 per cent following capital blending arrangements.

The Nigeria Mortgage Refinance Company (NMRC) has also expanded the use of blended interest rates to improve liquidity in the mortgage system, a move analysts say could unlock middle-income housing demand if sustained.

Industry discussions at the Real Estate Discussions & Awards (REDA) conference in late 2025 suggested that blended finance could accelerate partnerships between government and private developers, shorten project delivery timelines, and increase first-time buyer participation in 2026.

Solar-First Estates Move from Concept to Competitive Advantage

Beyond financing, energy is emerging as a defining factor in residential development strategy.

Solar-first estates, once viewed as premium or experimental, are increasingly becoming commercially viable alternatives to conventional smart-home developments, especially amid rising energy costs and unreliable grid power.

Victoria Crest Homes has been at the forefront of this shift, delivering fully solar-powered communities in Lagos, including its Citadel Views Estate. Managing Director and Chief Executive Officer, Ichechi Chinarhu Okonkwo, said the focus is on reducing long-term living costs while improving energy stability.

Developers say priorities are shifting away from costly automation features towards power-resilient communities powered entirely by renewable energy. Some new estates are now being delivered without generators, reflecting a broader industry pivot toward sustainability-driven value rather than luxury symbolism.

Data and PropTech Redefine Development Decisions

Another major shift shaping 2026 is the growing use of data and PropTech to guide development choices.

Large developers and property technology firms, including Purple Group and Novare Real Estate, say the future of the sector will be defined by how effectively developers use data already at their disposal.

From digital payment patterns and tenant behaviour to foot traffic analytics and demographic mapping, data is increasingly influencing what gets built, where, and for whom.

Industry experts warn that developers relying on outdated assumptions or intuition-driven planning may struggle to compete, as user-driven real estate becomes the dominant model across retail, residential, and mixed-use developments.

Governance, Scale, and Land Reform Take Centre Stage

As capital becomes more selective, developers are also under pressure to professionalise operations. Analysts expect many small, informal operators to evolve into structured corporate entities in 2026 to attract institutional funding, foreign investment, and government-backed financing.

Land administration reform and regulatory digitisation are also expected to play a defining role. Lagos State’s fully digital cadastral system, which has mapped over five million properties, is increasingly cited as a template for other states seeking to unlock dead capital and improve land security.

A Market Redefining Itself

Analysts say these converging shifts suggest Nigeria’s real estate market is no longer driven solely by land speculation or price appreciation but by fundamentals such as financing access, energy efficiency, data intelligence, and regulatory clarity.

If sustained, the reforms could reposition the sector as a more transparent, investable, and inclusive contributor to economic growth in 2026 and beyond.

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Wale Odutola, Chief Executive Officer of ARM Holdings, says the Ministry of Finance Real Estate Investment Fund (MREIF) is transforming Nigeria’s housing market into a credible and investable asset class.

Speaking in an interview with BusinessDay, Odutola explained that the fund was designed to introduce structure, transparency, and governance into a sector long constrained by short-term financing and policy inconsistency.

He said MREIF operates as a regulated, closed-ended collective investment scheme under the Securities and Exchange Commission (SEC), with all transactions managed through independent custodians and trustees to ensure accountability.

Odutola noted that the initiative is building investor confidence by standardising mortgage-backed instruments and creating traceable housing assets with predictable income streams.

He added that the fund aligns public policy and private finance, positioning the Ministry of Finance Incorporated (MOFI) as an anchor investor to de-risk early investments and crowd in pension funds, insurance firms, and development finance institutions.

According to him, MREIF’s multi-layered structure—featuring concessionary, commercial, and hybrid tranches—offers risk protection through MOFI’s first-loss position, while independent governance frameworks safeguard investors’ interests.

Odutola said transparency remains a key differentiator for MREIF, as the fund provides full disclosure through audited reports, performance dashboards, and regulatory oversight, helping to build trust and credibility.

He added that the federal government’s reforms around fiscal discipline and asset optimisation have strengthened investor confidence, with MREIF serving as a model for future infrastructure funds in sectors such as energy, transportation, and manufacturing.

Odutola concluded that MREIF represents a long-term vision for institutional maturity in Nigeria’s financial system, showing that disciplined governance and blended finance can drive sustainable housing and economic development.

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The Managing Director and CEO of the Nigeria Mortgage Refinance Company (NMRC) and Chairman of the African Union for Housing Finance (AUHF), Mr. Kehinde Ogundimu, has urged African governments and stakeholders to adopt innovative, blended financing models to bridge the continent’s deepening housing gap and expand mortgage access.

Speaking at the 41st Annual AUHF Conference & Annual General Meeting in Lagos, Ogundimu delivered opening remarks at the State and City Roundtable on Blended Finance for Affordable Housing, where he emphasized the need for transformative funding approaches amid surging urbanization trends.

With Africa’s urban population projected to triple by 2050, the demand for affordable housing continues to outpace supply, putting pressure on infrastructure, planning systems, and financial mechanisms. Ogundimu noted that the continent’s mortgage penetration remains alarmingly low—below 3%—and stressed that traditional models of financing are inadequate to meet the scale of the crisis.

“We must move beyond conventional thinking,” Ogundimu stated. “Blended finance the strategic integration of public, private, and philanthropic capital  is not just an alternative; it is a necessity for unlocking large-scale investment in housing.”

He added that strong government leadership, supportive policy frameworks, and private sector collaboration are critical to creating viable and scalable housing finance ecosystems. The AUHF conference, which brings together policymakers, developers, financiers, and urban experts, continues to serve as a platform for catalyzing practical solutions to Africa’s housing challenge.

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The African Development Bank Group (AfDB) has pledged $40 million to the Alliance for Green Infrastructure in Africa, Project Development Fund (AGIA-PD). This investment secures the Fund’s first close at $118 million.

This milestone marks a new phase in building Africa’s green infrastructure. The AGIA-PD is backed by a coalition of global and regional institutions. Partners include Germany’s KfW, the West African Development Bank (BOAD), the UK’s Foreign, Commonwealth & Development Office (FCDO), the Three Cairns Group, and the Soros Economic Development Fund.

AfDB’s contribution includes $20 million in grants, $10 million in commercial equity, and $10 million in junior equity from its Sustainable Energy Fund for Africa. This structure reduces early risks and draws in private investors.

“Through this $40 million, the African Development Bank is pioneering a model to unlock Africa’s green infrastructure potential,” said Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure and Industrialisation.

He added, “Our blended-finance strategy will mobilise billions in private capital for low-carbon, climate-resilient infrastructure.”

The funds will be used alongside both emerging and experienced developers. The goal is to create a diverse pipeline of sustainable projects ready for investment.

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