The Minister of Housing and Urban Development, Ahmed Dangiwa, recently revealed that the government is working towards a 12 per cent mortgage interest rate to make homeownership more accessible to Nigerians.
Speaking at the Saudi Arabia Real Estate Forum, Dangiwa emphasized the significant opportunities within Nigeria’s real estate sector, especially through the government’s Renewed Hope Cities and Estates Programme.
“Nigerians need homes now more than ever, and you can partner with the Nigerian government to deliver these houses at scale,” Dangiwa said.
The Nigerian government has acknowledged the urgent need to tackle the country’s massive housing deficit, currently estimated at 28 million units.
“The real estate sector contributed around 5.2 per cent to Nigeria’s GDP in 2024, and the market is expected to reach N2.25 trn by the end of 2025,” Dangiwa noted.
Despite the growth in the sector, challenges persist, particularly regarding the affordability of homes.
High mortgage interest rates, historically ranging from 28 to 30 percent, have made homeownership an unattainable dream for many Nigerians.
To counter this, Dangiwa announced that “the government is working to introduce a Real Estate Investment Fund that would offer mortgage interest rates as low as 12 per cent, significantly improving affordability for middle- and low-income Nigerians.”
“To achieve this, we are expanding the Federal Mortgage Bank of Nigeria and recapitalising it with N500 bn to provide more accessible single-digit mortgage products,” Dangiwa said.
He also highlighted the introduction of rent-to-own schemes, which would allow applicants to pay rent in monthly installments instead of large upfront sums.
The minister further addressed concerns about balancing profitability for developers with affordability for buyers.
“We are using incentives such as bankable off-take guarantees, facilitated land access, and low-interest financing to encourage investment in affordable housing,” he explained.
In addition to affordability, Dangiwa emphasized the importance of sustainability in the housing sector.
He revealed that the ministry is working with international partners, such as the International Finance Corporation, to incorporate green building practices into Nigeria’s housing development.
The government is also focused on establishing building materials manufacturing hubs across Nigeria’s six geopolitical zones to reduce reliance on imported materials, lower costs, and create jobs.
