The Federal Mortgage Bank of Nigeria (FMBN) has launched a new wave of people-focused mortgage products aimed at making homeownership more accessible to ordinary Nigerians.

Speaking in an interview, Managing Director Shehu Usman Osidi said the bank is shifting from a rigid, process-driven system to a more flexible, inclusive housing finance model powered by innovation and digital access.

Expanding mortgage access

At the centre of the reform is the expansion of mortgage offerings tailored to low- and middle-income earners. These include Rent-to-Own, Home Renovation Loans, Rent Assistance, Non-Interest Mortgages, and a Diaspora Mortgage Scheme.

According to Osidi, these products are designed to remove long-standing barriers that have kept millions of Nigerians out of the housing market.

He disclosed that over 24,000 Nigerians have already accessed renovation loans worth more than ₦21.2 billion, while the Rent-to-Own scheme allows families to move into homes without upfront equity, paying gradually like rent.

Housing delivery gains momentum

The bank also recorded a significant increase in housing delivery. In 2025, FMBN financed 6,911 housing units, a sharp rise from 2,165 units in 2024.

Large-scale housing projects are currently underway in cities such as Abuja, Lagos, and Enugu under the Renewed Hope Housing Programme.

Addressing affordability challenges

Osidi acknowledged that Nigeria’s housing crisis is driven more by affordability than supply.

He noted that many Nigerians cannot afford available homes, while others struggle to access financing, making affordability the key issue the bank aims to address.

To cushion the impact of inflation and high lending rates, FMBN mortgages offer single-digit interest rates of six to seven percent, alongside flexible repayment structures.

Broadening inclusion

The bank dismissed claims that mortgage financing benefits only the elite, stating that its programmes now target grassroots beneficiaries including civil servants, artisans, teachers, and small business owners.

Partnerships with labour unions and cooperatives are also helping to expand access to housing finance across different income groups.

Financial performance and outlook

FMBN reported an operational surplus of ₦19.5 billion in 2025 and has invested over ₦79 billion in housing projects.

Additionally, the bank recovered more than ₦27 billion from delinquent loans, strengthening its financial position.

Despite ongoing challenges such as undercapitalisation, Osidi expressed optimism about a planned ₦750 billion recapitalisation drive, which is expected to boost the bank’s capacity.

He stressed that while Nigeria’s housing deficit cannot be solved overnight, the current reforms mark a significant turning point.

The post FMBN Unveils People-Focused Mortgage Schemes to Boost Homeownership appeared first on Housing TV Africa.

Kenyan banks and savings and credit cooperative societies (saccos) have accessed Sh7.7 billion in additional funding from the Kenya Mortgage Refinance Company to expand mortgage lending and improve access to home ownership.

Funding to drive affordable housing

The new funding forms part of a broader financing push by KMRC, which has provided a cumulative Sh19.6 billion to participating lenders as of the end of 2025. 

The facility offers loans to financial institutions at a relatively low interest rate of about 5 percent, enabling them to extend mortgages to customers at around 9.5 percent—significantly lower than typical market rates.

Rising uptake among lenders

Major lenders increased their borrowing from KMRC to grow their mortgage portfolios. Some of the biggest beneficiaries include commercial banks and saccos that have ramped up lending to meet rising demand for home financing.

For instance, leading banks significantly expanded their loan uptake, while several saccos also increased borrowing to strengthen their presence in the mortgage market. 

However, a few institutions reduced their exposure through partial repayments, reflecting varying strategies across the sector.

Boosting home ownership

The KMRC refinancing model is designed to make mortgages more accessible, especially for middle-income earners who have traditionally struggled with high interest rates and short repayment periods.

Eligible borrowers can access home loans of up to Sh8 million, with repayment tenors stretching up to 20 years, improving affordability and long-term planning. 

The initiative primarily targets individuals earning between Sh50,000 and Sh200,000 monthly, a segment often underserved by traditional mortgage products.

Growing impact on housing market

KMRC noted that its mortgage portfolio now accounts for about 5 percent of the banking sector’s total mortgage value and 12.8 percent by loan numbers, highlighting its growing influence in Kenya’s housing finance sector. 

Additionally, the share of loans channelled through saccos has increased significantly, signalling a stronger role for non-bank lenders in expanding access to housing finance.

Encouraging inclusion

Nearly half of the mortgages supported through KMRC financing have been issued to women, reflecting progress in improving gender inclusion within the housing market.

The longer repayment periods—now averaging over 12 years—also indicate improved affordability compared to earlier years.

Outlook

The continued expansion of KMRC-backed financing is expected to drive further growth in Kenya’s mortgage market, particularly by lowering borrowing costs and increasing access to long-term housing loans.

Analysts say the model could play a key role in addressing housing deficits by making home ownership more attainable for a larger segment of the population.

The post Kenyan Banks, Saccos Secure Sh7.7bn to Boost Mortgage Lending appeared first on Housing TV Africa.

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.

The post Blended Finance and Solar Estates Set to Transform Nigeria’s Real Estate in 2026 appeared first on Housing TV Africa.

He describes the Act as anti-business, bureaucratic, and unfair to landowners. Initially enacted during the military era to simplify land acquisition, it now creates challenges that discourage investment and development.

Nweke explains that the law was introduced to give the government control over land because local communities resisted releasing it. However, this has led to unintended consequences. Businesses and individuals struggle to acquire land without government approval. Instead of supporting a thriving real estate sector, the Act gives governors too much power, limiting access to property for residential and commercial use. While the law had good intentions, Nweke insists that a review is necessary to create a balance between regulation and property rights.

Real Estate as a Key Driver of the Economy

Beyond land ownership concerns, Nweke highlights real estate as Nigeria’s largest industry. He believes it has the potential to drive employment, economic stability, and inflation control. With proper support, the sector could become a major job creator, reducing unemployment and poverty. He urges the government to recognize real estate as a key pillar of economic growth and implement policies that promote its expansion.

Mortgage System Fails to Support Homeownership

One of the biggest challenges in the industry, according to Nweke, is Nigeria’s failing mortgage system. As the founder of Orange Island, he has seen how difficult it is for Nigerians to access home financing. He attributes this failure to job instability and poor financial data tracking.

Unlike developed economies where employees maintain long-term careers and qualify for home loans, many Nigerians frequently switch jobs or face sudden unemployment. This makes them ineligible for mortgages. Only professionals in banking, oil, and multinational sectors benefit from these financial opportunities, leaving most citizens without access to homeownership.

High Construction Costs and Government Policies

Government policies directly affect real estate, influencing property prices and affordability. Nweke explains that rising construction costs, driven by high-interest rates and expensive building materials, make homeownership increasingly difficult. He believes the government should take action by reducing regulatory fees, streamlining land approval processes, and offering incentives to local manufacturers of cement and other building materials.

He suggests that similar policies used in the petroleum sector could also work in real estate. If the government supports local industries, housing costs will decrease, making homeownership more accessible.

Urgent Reforms Needed for a Thriving Housing Market

For Nigeria’s real estate sector to thrive, urgent reforms are necessary. Nweke emphasizes that removing outdated laws, improving mortgage accessibility, and supporting local industries will create a more inclusive and sustainable housing market. Without these changes, homeownership will remain out of reach for many, and Nigeria will miss out on the economic benefits of a thriving property sector.

The post Land Use Act Is Stifling Business, Needs Immediate Reform – Periwinkle Estate CEO appeared first on Housing TV Africa.

This move reinforces the government’s commitment to driving homeownership and economic growth while positioning the private sector at the forefront of execution and management.

Under President Bola Tinubu’s vision, with Finance Minister Wale Edun leading the charge, this initiative is set to open up new opportunities for Nigerians seeking affordable homes.

With this significant investment, the foundation has been laid for long-term sustainability under expert private sector stewardship. The appointed fund manager, ARM Investment Managers, will channel the funds to facilitate long-term, low-cost mortgage financing while also guaranteeing developers the security they need to deliver quality housing on time.

This approach is expected to not only boost homeownership but also accelerate economic development through the real estate and construction industries.

MREIF is positioned to revolutionize housing access by making long-term mortgages more attainable for aspiring homeowners. At the same time, real estate developers will benefit from guaranteed funding, allowing them to scale up affordable housing projects, create jobs, and stimulate broader economic activity. Following the successful full subscription of the N150bn Series 1 issuance, MOFI has announced that Series 2, worth N100bn, will soon be available to private and commercial investors, pending approval from the Securities and Exchange Commission.

This initiative presents an exciting opportunity for institutional investors, high-net-worth individuals, and private stakeholders to take part in a transformative project that merges economic impact with financial returns. Investors will not only benefit from attractive profits but will also contribute to Nigeria’s economic growth, housing development, and alignment with the United Nations’ Sustainable Development Goals.

The post FG Injects N150bn into Housing Revolution appeared first on Housing TV Africa.

While the initiative is seen as a step forward in addressing the country’s housing deficit, experts are questioning its implementation, sustainability, and the role of existing institutions in the housing sector.

The newly introduced Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund will offer low-cost mortgages to individuals seeking home ownership, with interest rates expected to range between 11 to 12 percent. The fund will be supported by a blend of government seed funding and private-sector investments, with the government contributing N150 billion from low-interest loans with terms extending up to 40 years.

Finance Minister Wale Edun highlighted the aim to attract long-term investors, such as pension funds and insurance companies, to add further capital at market-based rates. This combination of government-backed funding and market investments is expected to allow for affordable mortgage offerings.

However, experts have raised concerns about the fund’s management. Prof. Timothy Nubi, Director of the University of Lagos Centre for Housing and Sustainable Development, commended the government’s efforts but questioned which institution would oversee the fund. He noted the existence of several government institutions, including the Federal Mortgage Bank of Nigeria (FMBN) and the Nigeria Mortgage Refinance Company Plc (NMRC), which already handle housing-related matters. Nubi called for clarification on whether a new organization would be created, warning that establishing new bodies for every initiative undermines long-term development.

He stressed the importance of leveraging existing institutions rather than creating new ones, emphasizing that a holistic approach to addressing the housing deficit, including slum regeneration and specialized housing projects, was essential.

Similarly, Aliyu Wamakko, the immediate past president of the Real Estate Developers Association of Nigeria (REDAN), supported the initiative but argued that the focus should be on creating a conducive environment for private developers. Wamakko suggested that the government should provide a supportive policy framework, land, infrastructure, and low-interest loans to private developers, who could then efficiently deliver affordable housing. He highlighted that such an approach would not only reduce housing costs but also create jobs and generate wealth, with each house potentially creating 25 jobs.

While the initiative has the potential to significantly impact Nigeria’s housing sector, the mixed reactions from experts indicate that careful planning and clear execution will be critical for its success.

The post Federal Govt N250 Billion Housing Fund Faces Mixed Reactions from Key Industry Figures appeared first on Housing TV Africa.