FG Plans National Housing Finance Authority to Expand Affordable Home Ownership

The Federal Government has announced plans to establish a National Housing Finance Authority (NHFA) as part of a comprehensive reform programme aimed at improving access to affordable housing finance and increasing home ownership across Nigeria.

The Minister of Housing and Urban Development, Muttaqha Darma, disclosed the proposal on Tuesday during a stakeholders’ validation workshop in Abuja.

According to the minister, the proposed authority will be created under a new National Mortgage Industry Policy designed to strengthen mortgage financing, reposition the Federal Mortgage Bank of Nigeria (FMBN) and broaden participation in the National Housing Fund (NHF).

Darma said one of the key features of the reform is the inclusion of workers in the informal sector, such as traders, artisans and other self-employed Nigerians, who will be able to participate in the NHF.

He explained that eligible contributors would be allowed to make monthly payments starting from ₦5,000, a move expected to deepen financial inclusion and provide more Nigerians with opportunities to own homes through affordable mortgage schemes.

The minister noted that the reforms are intended to remove long-standing barriers to housing finance while creating a more inclusive mortgage system.

He also highlighted the growing importance of the housing sector to Nigeria’s economy, revealing that following the rebasing of the country’s Gross Domestic Product, the real estate sector now contributes about 13.4 per cent of national output, with an estimated value of ₦41 trillion.

According to him, the combined value of the real estate and construction sectors exceeded ₦77 trillion in 2025, making them among the largest contributors to the economy.

Darma stressed that attracting greater investment into the housing sector would depend on stronger regulation and increased investor confidence.

“Dubai is smaller than Kano. The difference is not money. The difference is trust, and trust is manufactured by regulation,” he said.

To strengthen oversight, the government is also proposing the establishment of a National Housing Industry Regulatory Commission to supervise developers, mortgage institutions and other stakeholders in the housing sector.

The minister said the planned reforms form part of the Federal Government’s broader strategy to reduce Nigeria’s housing deficit, improve affordability and promote sustainable urban development through stronger institutions, land reforms and increased public-private partnerships.