The Housing Development Advocacy Network (HDAN) says it is optimistic that, going into the future, the housing sector in Nigeria will witness a new development, especially in the area of financing for affordable housing.
The Network, which prides itself as the mouthpiece for Nigerians on issues of housing and homeownership, is also hopeful that the sector will witness a change in mortgage financing for both demand and supply sides of housing.
Festus Adebayo, Executive Director of HDAN, who made these observations during the group’s visit to the Ministry of Finance Incorporated (MOFI) in Abuja at the weekend, commended the federal government for the N250 billion it has given out to address Nigeria’s housing challenges.
Adebayo was confident that MOFI was ready to transform the housing sector, noting that the ministry has plans in place to tackle both the demand and supply challenges in the sector.
“They display a deep understanding of the complexities of housing development in addition to strategies such as leveraging the capital market to secure funding for large-scale projects,” he said.
He noted that MOFI’s approach aligned with HDAN’s advocacy goals, disclosing that the Network has, over the years, been promoting housing through the Africa International Housing Show, adding that they were happy MOFI was ready to raise money from the capital market which was one area that had not been fully tapped for housing purposes.
“We are hopeful that from 2025 our sector will witness a new development in the area of financing for affordable housing and mortgage financing on the demand and supply side,” Adebayo revealed.
He, however, advised MOFI to learn from the previous housing experiments of the federal government, urging them to do deals with only professionals and estate developers that have track record of delivery while those with loan defaulting records must be totally avoided.
Adebayo lauded MOFI’s proactive measures and called on estate developers that are not fraudulent to support the new idea of building one million houses by the federal government.
Ugochukwu Chime, former Chairman of the Federal Government Reform Committee on Land who was at the meeting emphasized the need for MOFI to address issues of land titling, explaining that land titling created a significant barrier to accessing housing funds.
MOFI is a creation of the federal government aimed to work in close collaboration with key housing agencies, including Family Homes Funds Limited (FHFL) and the Federal Mortgage Bank of Nigeria (FMBN). It is also aimed to support Primary Mortgage Institutions (PMIs) to enhance their capacity to meet the growing demand for affordable housing.
Armstrong Takang, the ministry’s CEO, disclosed that the federal government has launched the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) which, he noted, was a significant step toward addressing Nigeria’s housing deficit.
“This fund is a cornerstone of the One Million Homes Presidential Initiative designed to offer affordable housing through innovative financing solutions,” he said, explaining that MREIF would operate as a market-driven framework, integrating pension funds and other financial sector resources to provide affordable mortgage options, particularly to pension account holders.
Takang stressed that the fund was a pivotal step toward broadening homeownership opportunities and addressing long-standing housing challenges. According to him, transparency and market efficiency would underpin the fund’s operations, strengthening the mortgage market and creating sustainable pathways to homeownership.
To ensure the success of the MREIF, the government has engaged key figures from the pension and financial sectors. These include the Accountant General of the Federation, Oluwatoyin Madein, and executives such as Wale Odutola of ARM Pensions, Funmi Ekundayo of STC Trustees, and Saadu Jijji of PAL Pensions. Their collective expertise in fund management, real estate financing, and investment advisory will shape the fund’s structure and deployment.
MREIF offers opportunity to pension account holders and grants access to mortgage loans at reduced interest rates. This innovative approach aims to dismantle the barriers that have hindered homeownership for many Nigerians, aligning with government’s vision of an inclusive and sustainable housing sector.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
