The Federal Government has unveiled plans to establish a National Housing Finance Authority as part of a comprehensive reform agenda aimed at expanding access to affordable housing finance and strengthening Nigeria’s mortgage system.
Minister of Housing and Urban Development, Dr. Muttaqha Darma, disclosed the proposal on Tuesday during a stakeholders’ validation workshop on the proposed National Mortgage Industry Policy in Abuja.
According to the minister, the new authority will be created under the proposed policy to improve access to mortgage financing, reposition the Federal Mortgage Bank of Nigeria (FMBN), and expand participation in the National Housing Fund (NHF).
As part of the reforms, the government plans to open NHF membership to traders, artisans, and other informal sector workers, allowing them to contribute from as little as ₦5,000 monthly. The initiative is expected to deepen financial inclusion and provide millions of Nigerians with greater access to affordable home ownership.
Darma said the reforms are designed to unlock private investment in the housing sector while creating a more efficient and inclusive mortgage financing framework.
Highlighting the sector’s growing economic significance, he noted that real estate services account for about 13.4 percent of Nigeria’s Gross Domestic Product (GDP), valued at approximately ₦41 trillion following the rebasing of the national accounts. He added that the combined value of the real estate and construction sectors exceeded ₦77 trillion in 2025.
“After the rebasing of our accounts, real estate services alone account for about 13.4 percent of Nigeria’s GDP, roughly ₦41 trillion. It is our third-largest sector, ahead of telecommunications and crude oil. With construction added, the two crossed ₦77 trillion in 2025,” he said.
The minister stressed that stronger regulation remains critical to attracting investment into the housing market, arguing that investor confidence is built on a credible regulatory environment.
“Dubai is smaller than Kano. The difference is not money. The difference is trust, and trust is manufactured by regulation,” he added.
Beyond the proposed finance authority, the Federal Government is also seeking to establish a National Housing Industry Regulatory Commission to strengthen oversight of housing developers, mortgage operators, and other key players in the sector.
The proposed reforms form part of the government’s broader strategy to address Nigeria’s housing deficit, improve housing affordability, expand mortgage access, and promote sustainable urban development through a more transparent and efficient housing finance ecosystem.
