The Federal Government has announced a N1 trillion real estate fund through the Ministry of Finance Incorporation to facilitate homeownership with a 12 percent interest rate, aiming to make housing more accessible.

This initiative is seen as a step in the right direction, experts and stakeholders are calling for an even lower interest rate, preferably in the single-digit range, to truly make homeownership a reality for low-income earners.

Festus Adedayo, Executive Director of the Housing Development Advocacy Network (HDAN), acknowledged that while a single-digit interest rate would have been ideal, the current economic realities of Nigeria make it difficult.

However, he emphasized that starting with 12 percent is manageable given the economic challenges the country is facing. He also stressed the need for locally produced building materials to reduce construction costs and called on the Central Bank of Nigeria (CBN) to take a more active role in the housing and mortgage sector. In his view, the government must also support the Family Homes Funds (FHF) and the Federal Mortgage Bank of Nigeria (FMBN) to promote social housing and cater to those who may not be able to afford even the 12 percent interest rate.

Adewunmi Okupe, Managing Director of Ace Hi-Teck Construction Co., pointed out that a salary earner making N360,000 per month would struggle to afford a mortgage at 12 percent interest. He advocated for an interest rate between 4 to 6 percent, stating that affordable housing must come with affordable interest rates. Okupe calculated that taking a mortgage on a N12 million home at 12 percent interest would mean paying N1.44 million annually in interest alone, which translates to N120,000 per month. Given this, he argued that such a loan structure would be unfeasible for the average Nigerian worker.

Some experts believe that the government’s current 12 percent interest rate will result in unproductive mortgages that won’t truly address the housing crisis. One expert, identified simply as “Evocati,” questioned how the government arrived at this rate, arguing that with the current cost of homes, the mortgage system, as structured, does not benefit the target population. He insisted that a combination of single-digit interest rates and some form of housing subsidy would be the only way to make homes accessible to lower-income earners.

Dr. Niyi Ade, another industry expert, agreed that while the 12 percent rate increases affordability to some extent, it still excludes those at the lowest economic level. He argued that intervention should go beyond interest rates and extend to building materials and cost-effective construction methods.

However, not all experts share the same sentiment. Some, like Banjo, believe that 12 percent is still a significant improvement compared to the over 30 percent interest rates currently offered in the market. He argued that while single-digit interest rates would be preferable, starting with 12 percent is a step in the right direction, especially given the Monetary Policy Rate (MPR) of 27.5 percent.

Lagos-based estate surveyor and valuer, Femi Oyedele, dismissed the idea of single-digit interest rates in Nigeria, stating that economic conditions and cultural factors do not support such rates. He suggested that a single-digit rate is unlikely in the next ten years. He also clarified that the Ministry of Finance Incorporation (MOFI) is not a mortgage bank but a commercial entity designed to facilitate financial transactions.

He pointed to a similar N250 billion initiative announced in late 2024, which was meant to stimulate economic growth through the housing sector but was not structured as an affordable mortgage fund. According to Oyedele, the N1 trillion fund at 12 percent interest is more of a low-interest commercial loan than a mortgage loan, as true mortgage financing requires a structured contribution from prospective homeowners rather than direct government intervention.

Another expert, Emmanuel, believes that achieving a single-digit interest rate is possible in the medium term, provided the Naira’s devaluation is controlled and economic policies become more disciplined and transparent. He suggested that if MOFI is managed efficiently, the N250 billion initiative could be leveraged to generate over N1 trillion in funding for inclusive housing development. This, he said, would not only boost affordable housing but also attract impact investment and additional mortgage products that the sector has long struggled to secure.

While the N1 trillion real estate fund represents progress, the debate on affordability continues. Many experts believe that without a lower interest rate and additional housing subsidies, the initiative will not fully address Nigeria’s housing deficit. Others argue that given the country’s current economic situation, 12 percent is a reasonable starting point. The coming months will reveal whether this policy can truly bridge the housing gap or if further reforms will be necessary to ensure that homeownership is within reach for more Nigerians.

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A keynote address will be delivered by Babatunde Raji Fashola, SAN, CON, former Minister of Works and Housing, who is widely respected for his contributions to infrastructure development in Nigeria.

His speech will provide valuable insights into how the real estate sector can stimulate economic resurgence and support national development goals.

Also, Festus Adebayo, Executive Director of the Housing Development Advocacy Network (HDAN) and Convener of the Africa International Housing Show (AIHS), is one of the esteemed panelists set to shape discussions on the theme. As a leading voice in housing advocacy and policy reform, Adebayo has been at the forefront of championing sustainable housing solutions, affordable homeownership, and regulatory improvements within Nigeria’s real estate sector.

With his extensive experience in the sector, he will provide expert insights on how the real estate industry can drive economic growth, create employment opportunities, and attract investment to reposition Nigeria’s economy for long-term stability and prosperity.

His participation promises to bring fresh perspectives on innovation, funding models, and policy strategies that can reshape the future of the built environment.

The event will also feature other high-profile panel of industry experts, including ESV. Victor Alonge, PNIVS, FRICS, FCID, President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV); Kemi Olomola-Sijumade, MNI, Founder of Greenland Concepts Nig. Limited; Arch. Erejuwa Gbadebo, Director/Board Member at Berger Paints Nigeria Plc.

These seasoned professionals will engage in discussions on policy reforms, financing options, affordable housing solutions, and innovative building technologies that can transform the sector.

According to Wemabod Limited, the Real Estate Outlook is designed to serve as a platform for stakeholders to collaborate and develop actionable solutions that will shape the future of real estate in Nigeria.

As a company committed to fostering growth within the sector, Wemabod seeks to drive conversations that will lead to sustainable investments, job creation, and an improved housing market.

Real estate professionals, investors, policymakers, financial institutions, and members of the public are encouraged to attend and contribute to this vital discourse on the future of Nigeria’s built environment.

For participation and media inquiries, interested parties can contact Wemabod Limited via 0706 256 0301, 08184819360, or email Agbato.oluwaseun@wemabod.com.

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In response to the growing crisis of building collapses in Nigeria, leading organizations and professionals across the construction industry have joined forces to implement robust measures for safety.

At a national conference held in Abuja, the Minister of State for Industry, Trade, and Investment, John Eno, emphasized the urgent need for heightened safety standards, stating that adherence to such standards is the “bedrock of sustainable development” in Nigeria’s building sector.

The conference, themed “Adherence to Standard Practices: Bedrock of Sustainable Development in the Building/Construction Sector,” was organized by the Standards Organization of Nigeria (SON) and brought together key stakeholders, including the Council for the Regulation of Engineering in Nigeria (COREN), Housing Development Advocacy Network (HDAN), the Council of Registered Builders of Nigeria (CORBON), and other professionals from across the industry.

Highlighting the scale of the problem, Eno noted that Lagos State has recorded over 351 building collapses in the past 50 years, making up more than half of the nation’s 635 incidents. He stressed the government’s commitment to ensuring public safety, stating, “The security of lives and property is a priority, and addressing the ongoing issue of building collapses is paramount.”

COREN President Prof. Sadiq Zubair Abubakar underscored the necessity of enforcing codes and standards that are specifically tailored to Nigeria’s environmental and structural needs. “While foreign standards like Eurocodes are sometimes adopted, Nigeria must have its own codes to address local conditions and prevent future incidents,” Abubakar said.

Adding to the conversation, SON Director-General Dr. Ifeanyi Chukwunonso Okeke pointed out the need for greater industry-wide awareness and education on safety standards. “Many builders, suppliers, and professionals are still unaware of crucial standards for safe construction,” he remarked, calling for comprehensive training initiatives to align the workforce with international safety practices. Okeke also highlighted the challenge of meeting Nigeria’s rapidly growing demand for affordable housing while ensuring quality and safety are not compromised.

With a shared resolve to enhance regulatory frameworks, improve public awareness, and adopt innovative building materials, SON, COREN, HDAN, CORBON, and other allied bodies reaffirmed their commitment to tackling the building collapse crisis. This unified approach marks a significant step toward creating safer, more resilient cities across Nigeria.

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In a bid for more sustainable urban management, HDAN is advocating for a confiscation and repurposing approach, which would see properties redirected toward essential housing needs rather than demolished.

Speaking to journalists at a demolition site in Lugbe, HDAN’s Executive Director, Festus Adebayo, raised concerns over the economic impact of demolishing valuable assets. “Demolishing entire estates is a colossal waste, especially in the current economy,” Adebayo remarked.

He underscored the need for alternative strategies that retain and repurpose properties for societal benefit. He further condemned the situation, saying FCT officials who, through fake approvals and permits, allowed such developments to proliferate must be sanctioned to ensure accountability.

As a solution, HDAN has also proposed that confiscated properties could serve as essential housing for key workers, including doctors, journalists, and public servants if it is possible as there may be other barriers that will not make this achievable. “Rather than tearing down these estates, we should consider transforming them into workforce housing estates,” Adebayo suggested. He pointed to recent government projects, like the judges’ estate, as an example.

HDAN also called for the probe of FCDA site officers in permitting these developments, questioning the transparency and accountability of Abuja’s land management. “If the developers have lost their estates, those site officers who allowed the buildings to reach that level must also be punished.”

Adebayo emphasized the need for a unified city plan, urging the release of the Phase Five Abuja City Development Plan, which has been pending and could help prevent future unauthorized develop

“There must be collaboration among agencies of government involved in the city development including the Municipal Area Council and FCDA to avoid chaos and fostering fraud in land acquisition and real estate development,” Adebayo observed. Also, the Urban and Regional Planning Department must do more in collaborating with development control even though they are under different supervisions.

He warned that the ongoing demolitions not only harm developers and homeowners but could also dampen real estate investment in Abuja, with potential ripple effects across Nigeria’s economy.

HDAN’s call to action is that the FCT Administration should prioritize constructive dialogue and rethink the demolition strategy in favour of solutions that can enhance investments in housing and infrastructure and promote economic growth.

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This is contained in a statement by the Executive Director of the network, Barrister Festus Adebayo, and made available to newsmen in Abuja on Monday.

He also used the opportunity to call on the President to do more in the area of housing, saying HDAN would like to remind him of his manifesto as it relates to the housing sector.

According to the statement, inflation, cost of building materials, land access barrier as well as some obsolete laws that needed to be amended have become a barrier to affordable housing delivery in Nigeria.

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The Executive Director also used the opportunity to salute pioneer leaders of the housing industry who have laid the foundation that we are building on today.

He mentioned the late Professor Akin Mabogunje, the late Chief Engr S. O. Fadahunsi, the Late S.P.O Fortune Ebie, and many others too numerous to mention, who have contributed in one way or the other in laying the foundation of today’s housing sector in Nigeria.

Adebayo further mentioned that the legacies of these founding fathers in working with the government to establish the Federal Mortgage Bank of Nigeria (FMBN), and Federal Housing Authority (FHA)among others, are the reasons why those leaders’ memory will continue to linger in our minds.

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HDAN then called on the stakeholders in the housing industry to put the interest of the country and the sector development as a priority. He also called for collaboration among them.

He also called on the stakeholders to drop the idea of personal interests, saying “The more this continues, the more difficult it is to achieve the housing sector of our dream.”

“This is not the time for politics about housing, it is time to be serious-minded and to be determined to get the government (the executive and the legislature) to do the right thing in the area of housing,” Barrister Adebayo concluded.

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