FG to establish housing finance authority, expand NHF coverage to informal sector
…real estate, construction contributed over N77tn to Nigeria’s economy in 2025 – minister
…real estate, construction contributed over N77tn to Nigeria’s economy in 2025 – minister
The Federal Government has unveiled plans to establish a National Housing Finance Authority (NHFA) as part of a broad package of reforms aimed at expanding access to affordable housing finance, deepening mortgage penetration and bringing millions of informal sector workers into the National Housing Fund (NHF) scheme.
Muttaqha Darma, Minister of Housing and Urban Development, disclosed the proposal on Tuesday at a stakeholders’ validation workshop on the proposed National Mortgage Industry Policy in Abuja.
According to the minister, the proposed authority will reposition the Federal Mortgage Bank of Nigeria (FMBN), improve access to mortgage financing and drive greater participation in the NHF, particularly among workers in the informal economy who have traditionally been excluded from the scheme.
Darma said the reforms would enable traders, artisans and other informal sector operators to participate in the NHF with monthly contributions starting from N5,000, a move he said would promote financial inclusion and expand access to affordable home ownership.
He explained that the initiative forms part of the government’s wider efforts to reduce Nigeria’s housing deficit by creating a more inclusive and sustainable housing finance system.
The minister also announced plans to establish a National Housing Industry Regulatory Commission to strengthen oversight of developers, mortgage institutions and other operators within the housing value chain.
According to him, stronger regulation is essential to restoring investor confidence and attracting more private sector capital into the housing market.
“After the rebasing of our accounts, real estate services alone account for about 13.4 per cent of Nigeria’s GDP, roughly N41 trillion. It is our third-largest sector, ahead of telecommunications and crude oil. With construction added, the two crossed N77 trillion in 2025,” Darma said.
He argued that despite the sector’s enormous economic potential, investor confidence remains constrained by regulatory weaknesses.
“Dubai is smaller than Kano. The difference is not money. The difference is trust, and trust is manufactured by regulation,” he said.
Darma noted that improved housing finance, combined with a stronger regulatory framework, would unlock greater private investment, stimulate housing development and make home ownership more affordable for Nigerians.
The proposed National Mortgage Industry Policy is expected to serve as the framework for modernising Nigeria’s mortgage ecosystem by improving institutional coordination, widening access to long-term housing finance and encouraging greater participation from both public and private sector stakeholders.
The reforms also align with the Federal Government’s broader housing agenda, which includes land reforms, urban renewal initiatives and public-private partnerships aimed at addressing Nigeria’s housing deficit and promoting sustainable urban development.
