Nigeria’s Minister of Housing and Urban Development, Mr Ahmed Musa Dangiwa, has called for increased innovation and collaboration among mortgage bankers and brokers to enhance Nigerians’ access to affordable housing loans.
He urged for creative solutions that can help broaden the availability of loans, ensuring more citizens achieve home ownership.
The minister mentioned strategies to enhance the sector’s impact on low- and middle-income earners while speaking at the 21st Mortgage Bankers and Brokers Conference held over the weekend in Abuja,
Themed “Strengthening Public-Private Partnerships in Mortgage Banking to Achieve Sustainable Development Goals (SDGs),” the event spotlighted innovations and strategies to address Nigeria’s significant housing deficit.
Addressing the disparity in loan rates, Dangiwa called on stakeholders to work together to create hybrid products that bridge the gap between commercial mortgage rates of 28% and the 6-7% offered by the Federal Mortgage Bank of Nigeria (FMBN).
“That way, more Nigerians within the low and middle-income brackets can access affordable housing loans. Of course, this will require intuition, innovation, and sacrifice,” he stated.
The minister cited the ongoing cross-subsidy initiative under the Renew Hope Cities program as an example of innovative financing, explaining “a portion of the profit realized from units sold at commercial rates is used to subsidize some of the units reserved for low- and middle-income earners”.
Dangiwa further highlighted regulatory challenges, particularly the single obligor limit imposed by the Central Bank of Nigeria, which restricts the amount that financial institutions can lend to a single borrower.
He urged stakeholders to support FMBN’s efforts to advocate for the removal of this limitation, describing it as a key barrier to sector growth.
Additionally, the minister pointed to the recent launch of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund as a promising avenue to attract capital market funds into the housing sector.
“This is a good initiative because, as a ministry overseeing the housing and urban development sector, we gladly welcome any initiative supporting our affordable housing delivery goals,” Dangiwa said.
He encouraged mortgage bankers and brokers to explore the fund and engage with MOFI to foster collaboration.
The minister identified the importance of public-private partnerships (PPP) and sustainable practices in housing development, drawing lessons from the recent World Urban Forum in Cairo.
“The government and the private sector are now adopting climate-smart approaches to new city development to achieve the SDGs we want to achieve,” he said, urging stakeholders to join efforts to build cities that are resilient, sustainable, and inclusive.
He noted the low contribution of the mortgage banking and housing finance sector to Nigeria’s GDP, currently below 0.5%.
He called for a renewed commitment to innovation and collaboration to transform the sector.
“We can commit to a better future here and now by committing to do things differently with innovation and better collaboration,” he said.
The conference brought together key players in the housing and mortgage sectors, providing a platform for deliberations on strategies to boost the sector’s contribution to Nigeria’s economy while addressing the housing needs of its citizens.
In his welcome address, the President of the Mortgage Bankers Association of Nigeria (MBAN), Ebilate Mac-Yoroki, called for critical reforms and strengthened public-private partnerships to enhance Nigeria’s mortgage banking sector and bridge the housing affordability gap.
Mac-Yoroki emphasized the sector’s pivotal role in achieving Sustainable Development Goals (SDGs).
“This year’s theme, Strengthening Public-Private Partnerships in Mortgage Banking to Achieve Sustainable Development Goals, highlights our shared responsibility in supporting affordable housing,” he said.
Mac-Yoroki noted that inclusive housing finance is essential for realizing SDG 11 on sustainable cities and SDG 1 on eradicating poverty.
He also outlined progress since the last conference, including the inauguration of a Technical Committee on National Housing Data to establish a unified housing database, which he described as a “critical step toward data transparency and accessibility in the sector.”
Mac-Yoroki proposed key reforms to address challenges, including amending outdated laws such as the Land Use Act (1978) and introducing foreclosure laws to streamline real estate transactions.
He urged the adoption of the Model Mortgage Administration Law nationwide and the automation of land registries to improve efficiency.
Calling for financial innovation, Mac-Yoroki advocated leveraging assets to issue mortgage-backed securities and digitalizing title documents for easier transactions.
“By fostering collaboration, promoting innovation, and addressing key challenges, mortgage banking can become a powerful force for sustainable development,” he concluded.
The Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Mr. Shehu Usman Osidi, delivered a compelling presentation on “Leveraging Technology in Customer Service Delivery.”
Osidi highlighted the bank’s progress in adopting cutting-edge technology, such as artificial intelligence, blockchain, and robotic process automation, to streamline mortgage origination, underwriting, and loan servicing.
He emphasised FMBN’s commitment to an integrated IT-driven mortgage ecosystem, with efforts already underway to digitize operations and enhance customer experience.
“FMBN’s Core Banking Application deployment is nearing completion, enabling automated and real-time mortgage processes. Partnerships with emerging technology players aim to introduce innovative tools, including virtual property tours and automated loan processing.
“Plans to establish a digital registry to centralize mortgage records and improve transparency. Enhancements in service delivery include online portals for account management and simplified loan application processes.” He concluded.
The conference concluded with the recognition and award of enduring leadership of an inspiring legacy of vision and impact of pioneer Executive Secretary and Chief Executive Officer of MBAN, Mr Kayode Omotosho.
Dominica Nwabufo
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