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 Chief Executive Officer of the Mortgage Banking Association of Nigeria, Adedeji Ajadi, has warned that Nigerians earning below N500,000 per month are effectively excluded from home ownership under the current mortgage structure, deepening the Nigeria mortgage affordability crisis.

Speaking in an interview, Ajadi described the country’s mortgage penetration rate—currently below one per cent—as alarmingly low, particularly in the face of a housing deficit estimated at over 28 million units.

Structural Barriers to Mortgage Growth

Ajadi identified limited access to formal financial systems as a primary obstacle. A large proportion of Nigerians operate within the informal economy and cannot meet documentation requirements such as verifiable income records and formal employment contracts.

High interest rates, currently ranging between 18 and 27 per cent, further compound affordability constraints. At these levels, mortgage repayments on even modest housing units often exceed 40 per cent of a borrower’s monthly income, breaching internationally accepted affordability thresholds.

Legal and administrative bottlenecks also weaken the system. Inefficient land titling processes, prolonged foreclosure procedures, and fragmented property records discourage lenders and inflate risk premiums. As a result, many Nigerians resort to incremental self-construction or informal housing arrangements instead of formal mortgage financing.

Pathways to Lower Interest Rates

Ajadi emphasised that reducing mortgage rates requires a coordinated, multi-layered strategy.

Strengthening long-term funding access through refinancing institutions such as the Nigeria Mortgage Refinance Company is essential to provide liquidity to primary lenders.

Government-backed interventions—including subsidised financing programmes and targeted housing funds—can also reduce borrowing costs for low- and middle-income earners. However, macroeconomic stability remains critical. Persistent inflation, which exceeded 33 per cent in 2024, alongside exchange rate volatility, continues to increase funding costs and erode household purchasing power.

Without stable inflation and currency conditions, lenders will continue pricing mortgages at elevated levels to offset risk exposure.

Informal Economy and Youth Inclusion

With roughly 85 per cent of Nigeria’s workforce operating in the informal sector, traditional salary-based mortgage models remain exclusionary.

Ajadi advocated for alternative credit scoring frameworks that incorporate rent payment history, utility bills, mobile wallet transactions and remittance inflows to assess borrower credibility. Flexible repayment models—including income-linked instalments, step-up mortgage structures and hybrid rent-to-own schemes—could improve access for young professionals and informal earners with variable income streams.

Micro-mortgages and cooperative-backed housing guarantees were also identified as scalable options to widen participation in housing finance.

Diaspora Capital and Mortgage-Backed Securities

Despite diaspora remittances surpassing $20 billion in 2023, Ajadi noted that mortgage-linked investments remain limited due to concerns over fraud, weak land administration systems and limited transparency.

To unlock diaspora capital, he recommended the development of standardised mortgage pools, credit enhancement mechanisms and internationally rated mortgage-backed securities. Transparent digital platforms, enforceable legal frameworks and credible dispute resolution mechanisms would be necessary to build investor confidence.

Lessons could be drawn from countries such as Kenya and Morocco, where securitisation and refinancing models have deepened housing finance markets.

Technology and Land Reform

Ajadi highlighted the transformative potential of digitised land registries and blockchain-based title systems. Tamper-proof property records would reduce fraud, accelerate verification processes and enhance lender confidence.

Streamlined land registration and clearer ownership documentation would expand the pool of mortgage-eligible properties, strengthening collateral security and reducing default risks.

Consumer Protection Gaps

Weak consumer protection frameworks in Nigeria’s housing finance market expose borrowers to opaque pricing structures, hidden fees and exploitative clauses. Ajadi called for standardised mortgage contracts, mandatory annual percentage rate disclosures and the establishment of a dedicated mortgage ombudsman to resolve disputes.

He stressed that improved regulatory safeguards would restore trust and attract both domestic and institutional investors.

Outlook for Home Ownership

Under current conditions, Ajadi maintained that home ownership remains largely unrealistic for Nigerians earning below N500,000 monthly. Without structural reforms addressing funding costs, land administration, legal enforcement and macroeconomic volatility, the Nigeria mortgage affordability crisis will persist.

However, with coordinated policy reforms, digital innovation and targeted subsidy frameworks, the mortgage sector could evolve into a more inclusive and sustainable pillar of Nigeria’s housing ecosystem.

The post N500,000 Earners Priced Out of Mortgages – MBAN appeared first on Housing TV Africa.

Despite its potential to transform the mortgage landscape, only a handful of states Lagos, Ekiti, Nasarawa, and Kaduna have enacted their versions of the law. This reluctance by most state governments has discouraged property developers and mortgage investors from engaging in these regions, stalling progress in addressing Nigeria’s growing housing deficit.

The MMFL was designed to establish state-level mortgage boards that simplify property registration, streamline title perfection processes, and enable non-judicial foreclosure mechanisms. The law aims to create a conducive environment for mortgage origination, allowing citizens to access affordable housing while generating jobs and boosting internally generated revenue. However, approximately 32 states have yet to domesticate the law, leaving Nigeria’s housing sector fragmented and underfunded. In states like Edo, Akwa Ibom, and Cross River, the law remains in various stages of legislative limbo, while Ogun State is merely awaiting the governor’s sign-off.

In contrast, states that have embraced the MMFL are seeing tangible benefits. Lagos, for example, has implemented a rent-to-own scheme backed by its mortgage board, enabling over 20,000 residents to purchase homes with a low-interest rate of 6% and a repayment period of up to 10 years. Similarly, Nasarawa State’s passage of the law has made real estate investments more secure and bankable, attracting investors and improving homeownership rates.

The persistent housing deficit in Nigeria remains staggering. A World Bank survey revealed that 700,000 housing units are needed annually to meet demand, yet only about 100,000 units are produced yearly. This shortfall has resulted in an accumulated deficit, further exacerbated by a lack of mortgage financing. According to a 2020 Central Bank of Nigeria (CBN) report, the country requires between N15 trillion and N20 trillion in mortgage financing to bridge the housing gap, but only 5% of Nigeria’s 13.7 million housing units are currently financed through mortgages.

The mortgage sector’s challenges are compounded by an underwhelming contribution to the nation’s GDP—just 0.5%. This figure pales in comparison to countries like Namibia, where mortgage penetration accounts for 18.9% of GDP, and South Africa at 16.2%. In Nigeria, reliance on personal savings rather than mortgages continues to dominate the housing market. This is largely due to the absence of an effective foreclosure mechanism, which deters lenders from offering mortgages. Obtaining a foreclosure order through the courts can take years, discouraging financial institutions from taking on the risk of non-repayment.

The MMFL introduces several innovative features to address these challenges, including the establishment of mortgage registries, streamlined consent requirements, and alternative dispute resolution mechanisms. Notably, it allows for non-judicial foreclosure, enabling lenders to reclaim properties without prolonged court proceedings. For instance, Kaduna State’s 2017 adoption of the MMFL has made it easier for lenders to recover defaulted loans, creating a more favorable environment for mortgage investments.

However, the adoption of the MMFL has faced resistance from state governments, primarily due to the provisions of the Land Use Act, which vests land ownership in state governors. Many governors are hesitant to be bound by foreclosure laws, fearing a loss of control over land matters. This reluctance has stalled efforts to create a unified mortgage framework across the country.

Experts argue that widespread adoption of the MMFL is crucial for unlocking Nigeria’s housing potential. Former President of the Mortgage Banking Association of Nigeria (MBAN), Adeniyi Akinlusi, emphasized that effective foreclosure laws would enable more citizens to own homes, thereby addressing economic disempowerment and attracting investment into the housing sector. Similarly, the Chief Executive Officer of the Nigerian Mortgage Refinance Company (NMRC), Kehinde Ogundimu, noted that the MMFL provides a sound legal framework for mortgage transactions, making real estate investments more secure and expanding revenue streams for state governments.

Despite these benefits, public perception remains a challenge. Many Nigerians view foreclosure as a draconian measure, fueling fears of losing their homes. To address this, the term “foreclosure” is being rebranded as “Mortgage Loan Administration” to make the concept less intimidating. Advocates stress that the law is not about forcefully taking over properties but about creating opportunities for more Nigerians to access homeownership through a sustainable mortgage system.

The stakes are high. Without widespread adoption of the MMFL, Nigeria’s housing deficit will continue to grow, leaving millions without access to affordable homes. States that delay passing the law risk missing out on the economic and social benefits of a thriving housing sector. For Nigeria to close its housing gap and foster economic growth, state governments must prioritize the domestication of the MMFL, creating an environment where affordable homeownership becomes a reality for all.

The post Unlocking Homeownership: Why Nigeria’s Housing Crisis Persists Without Foreclosure Laws appeared first on Housing TV Africa.

What are the areas in housing reforms that should be achieved by the new administration?

When we talk about housing, we must answer the basic question which is what is a house? A house must consist of Land, approved design, construct the house on the land, infrastructure must be available like access roads, water, and power, and a house without those is not livable. These are areas begging for reforms.

There are lots of policies in this regard that need to be domesticated. For example, policy addressing the issue of quality like the housing building code. However, the problem always lies in the implementation, if we can implement at least 20% that would go a long way

Another critical aspect is the issue of the cost of building, with the current economic situation it is increasingly becoming expensive. A lot of our building materials are imported and if you factor that into housing it becomes unaffordable.

We need to start exploring our local building materials as this can be an effective way of reducing costs.
Another area of reform the government can tap into is the provision of social housing g for those who are not financially buoyant.
Rental housing is another area to look out for, most people want a decent house and are not just concerned about owning the house.

With the current state of Naira and inflation, how can we finance the housing sector for optimal housing delivery?

Tough times require tough decisions, which in turn increases innovative actions. I am happy some of these issues are being addressed, we saw the newly confirmed central bank governor talking about why we are having issues of continuous naira devaluation. We need to settle outstanding payment by the central bank, once this is addressed people will know.

There’s also an issue of security of funds, once I bring my dollar into Nigeria, there should be a dollar to take out. So if that’s not happening, I wouldn’t want to bring my dollar in again. With this, we’d have shortages in building materials, supply chain issues, and a host of others.

Talking about interest rate at 27% is not something to be discussed outside the macro-economics, a lot of effort needs to be put into the macro-economics. If we use fewer foreign materials, there’d be less demand for importation input, and that will also reduce the effect of the demand for foreign exchange.

This is the time for us to also embrace innovation, Nigerians are quite resourceful. We must retreat and solve our problems ourselves. This is not the first time this is happened, and am sure we’d surmount this and move ahead.

How can the National Assembly support the new administration, especially the Ministry of Housing and Urban Development?

The new Minister of Housing and the Honourable Minister of State for Housing needs a lot of support. We know the importance of model mortgage foreclosure law has been domesticated in certain states. But one would expect homeownership to be easy here in Abuja the state capital, but reverse is the case.

Government is the biggest employer of labour, and it is bad that those who work with the government cannot buy a home and own it, not because they don’t have a federal mortgage bank, but if the house cannot be mortgaged then the aim is defeated.
Another aspect of the model mortgage foreclosure law is that it has a provision that every state must have its own law. We need the National Assembly to support this administration and the ministry.

There’s also an issue of titling, now that we have an action minister of the FCT, we expect that the issue of titling will be addressed for good.

At a point we proposed the ministry every month should publish tittles signed by the minister, no matter the amount, it is important for us to see the effort as this will connote accountability. This is also applicable to states as well.

Furthermore, the National Assembly must look at the recapitalization of the Federal Mortgage Bank. This is because we cannot have a Federal Mortgage Bank with shareholders’ funds which are eroded. It needs to be recapitalized for the role they are playing. There are quite a number of mortgage-related bills awaiting passage through the National Assembly.

We also need to have the mortgage guarantee company come up to show support to the mortgage banking industry and even commercial banks so that if you give mortgages, the idea is that if in the loan there’s a default before you realize it, you can get liquidity from the mortgage guarantee company. This is very important in ensuring the mortgage system works effectively.

NHF Act is becoming a serious matter, as at today the Central Bank of Nigeria is not championing the Law that says CBN should pursue all commercial Banks to contribute to that reform, what is your position?

The law is clear, and we must be law-abiding. At a time the National Assembly called some of the insurance companies to a meeting and that was talked about.
A lot of laws need to be reviewed, not only National Housing Fund NHF laws, the laws guiding Mortgage Banks, and even the NHF structure itself. An area this government needs to look at is the area of reforms. If we put the right reforms on policy, provide an enabling environment to thrive and support what we need to achieve.

We need to attract capital, the federal government will not have enough money for housing, and a lot of money will have to come from private sources, both within and outside the country.
We must reduce homelessness, and ensure people live in decent houses, as this will help reduce JAPA syndrome ultimately.

The post The Type of Housing Sector Reforms Nigeria Needs – Former MBAN President appeared first on Housing TV Africa.