- •MBAN seeks reforms to boost sector
Housing and Urban Development Minister Ahmed Musa Dangiwa has called for greater innovation and collaboration among mortgage bankers and brokers to expand access to affordable housing loans for Nigerians.
The minister spoke at the 21st mortgage bankers and brokers conference, with the theme: Strengthening Public-Private Partnerships in Mortgage Banking to Achieve Sustainable Development Goals (SDGs),” at the weekend in Abuja.
He outlined the Federal Government’s strategies to enhance the sector’s impact on low- and middle-income earners.
The event spotlighted innovations and strategies aimed at addressing Nigeria’s significant housing deficit.
Commenting on the disparity in loan rates, Dangiwa urged stakeholders to work together to create hybrid products that would bridge the gap between commercial mortgage rates of 28 per cent and the 6 to 7 per cent offered by the Federal Mortgage Bank of Nigeria (FMBN).
“That way, more Nigerians within the low and middle-income brackets can access affordable housing loans. Of course, this will require intuition, innovation, and sacrifice,” he said.
The minister cited the ongoing cross-subsidy initiative under the Renew Hope Cities programme as an example of innovative financing.
He explained that “a portion of the profit realised from units sold at commercial rates is used to subsidise some of the units reserved for low- and middle-income earners”.
Dangiwa also highlighted regulatory challenges, particularly the single obligor limit imposed by the Central Bank of Nigeria (CBN), which restricts the amount that financial institutions can lend to a single borrower.
The minister urged stakeholders to support FMBN’s efforts in seeking the removal of the limitation, describing it as a key barrier to sector growth.
According to him, the recent launch of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund is a promising avenue to attract capital market funds into the housing sector.
“This is a good initiative because, as a ministry overseeing the housing and urban development sector, we gladly welcome any initiative that supports our goals for affordable housing delivery,” Dangiwa said.
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The minister advised mortgage bankers and brokers to explore the fund and engage with MOFI to foster collaboration.
He emphasised the importance of public-private partnerships (PPP) and sustainable practices in housing development, drawing lessons from the recent World Urban Forum in Cairo, the Egyptian capital.
“The government and the private sector are now adopting climate-smart approaches to new cities development to achieve the SDGs we want to achieve,” Dangiwa said.
The minister advised stakeholders to join efforts to build cities that are resilient, sustainable, and inclusive.
The President of the Mortgage Bankers Association of Nigeria (MBAN), Ebilate Mac-Yoroki, called for critical reforms and strengthened PPP to enhance Nigeria’s mortgage banking sector and bridge the housing affordability gap.
The MBAN president emphasised the sector’s pivotal role in achieving Sustainable Development Goals (SDGs).
“This year’s theme: Strengthening Public-Private Partnerships in Mortgage Banking to Achieve Sustainable Development Goals, highlights our shared responsibility in supporting affordable housing,” he said.
Mac-Yoroki noted that an inclusive housing finance is essential for realising SDG 11 on sustainable cities and SDG 1 on eradicating poverty.
He outlined the progress that had been made since the last conference, including the inauguration of a Technical Committee on National Housing Data to establish a unified housing database, which he described as a “critical step toward data transparency and accessibility in the sector”.
Mac-Yoroki proposed key reforms to address challenges, including amending what he called outdated laws, such as the Land Use Act (1978), and introducing foreclosure laws to streamline real estate transactions.
He also urged the adoption of the Model Mortgage Administration Law nationwide and the automation of land registries to improve efficiency.