BusinessDay confab: FG rolls out housing reforms, orders 40% NHF mortgage disbursement

The federal government on Thursday unveiled a sweeping package of housing reforms at the BusinessDay Abuja Real Estate Conference 2026, directing the Federal Mortgage Bank of Nigeria (FMBN) to channel at least 40% of annual National Housing Fund (NHF) contributions into mortgage financing as part of efforts to expand home ownership, attract private investment and tackle Nigeria’s housing deficit.

Speaking at the conference, Mustapha Rabe Darma, Minister of Housing and Urban Development, said the bank must increase the number of mortgages it disburses annually from about 500 to at least 2,000 to expand home ownership across the country.

He said the ministry was finalising a comprehensive regulatory framework for the housing and built environment, which would soon be presented to stakeholders before approval by the Federal Housing Council.

According to him, the reforms include developer licensing, escrow protection for homebuyers’ funds, professional registration, stricter construction quality control, land value capture, urban renewal initiatives, land readjustment programmes and the establishment of a National Housing Industry Data Observatory to monitor approvals and sector performance.

“We want these policies to be driven by stakeholders rather than imposed from above. That is why we are opening them for extensive consultation before adoption,” the minister said.

The minister also raised concerns over Nigeria’s worsening rental market, citing the National Bureau of Statistics’ 2019 Living Standards Survey, which showed that about 49% of urban residents live in rented accommodation.

He condemned arbitrary rent increases and the conversion of residential buildings into commercial properties, describing the trend as a growing national challenge affecting cities such as Port Harcourt, Lagos and Abuja.

To address the situation, Darma
disclosed that the ministry was developing modern tenancy legislation, a national rent registry and stronger enforcement mechanisms to protect tenants and preserve affordable housing.

He added that the ministry’s National Housing Data Committee had produced what he described as Nigeria’s most credible estimate of the country’s housing deficit, putting it at 14.9 million units, with another 14 million Nigerians living in substandard housing.

The minister further announced that the federal government would soon launch the Renewed Hope Social Housing Scheme, which will deliver 200 housing units in each of Nigeria’s 774 local government areas for teachers, primary healthcare workers and other vulnerable citizens.

He urged developers, financiers, investors, professional bodies and tenant associations to participate in the stakeholder engagement process to strengthen the proposed reforms.

In his remarks, Akintoye Felix Adeoye, National President of the Real Estate Developers Association of Nigeria (REDAN), said Nigeria’s housing deficit and rapid urbanisation require practical policies that translate into affordable housing projects.

He also called for stronger collaboration among government, investors and the private sector to mobilise financing, accelerate housing delivery and build sustainable communities, while commending BusinessDay for organising the conference.

Earlier, Frank Aigbogun, Publisher and Chief Executive Officer of BusinessDay Media Limited, represented by John Osadolor, Managing Editor, said Nigeria requires stronger public-private collaboration to bridge its estimated 28 million-unit effective housing shortage.

Speaking on the conference theme, “From Policy to Projects: Mobilising Capital for Sustainable Real Estate Development in Abuja,” Aigbogun said rapid population growth, rising construction costs, weak mortgage penetration and inadequate infrastructure continued to widen the country’s housing gap.

He described the conference as a strategic platform for policymakers, investors and industry players to align policy, financing and execution towards building a more inclusive, resilient and sustainable real estate sector.

“We desire that this conference will provide a credible national platform for shaping policy dialogue, mobilising capital, and driving actionable solutions for sustainable real estate and urban development in Abuja.

“Among its many benefits, this conference provides opportunities for stakeholders and prospective investors to gain valuable knowledge about the sector,” he said.