Housing Reforms Must Also Address Construction Finance, Says Mixta Africa

Bennett Oghifo Mixta Africa has urged Nigeria's proposed National Housing and Built Environment Regulation Policy, alongside a National Mortgage Industry Policy, to be backed by a robust construction finance framework. Group Chief Commercial Officer, Adetola Akinsulire, stated on CNBC Africa's Closing Bell West Africa that regulation and better access to buyer finance alone won't resolve Nigeria's housing shortage.

The reforms aim to tackle the sector's three key issues: trust deficit, buyer finance, and the missing element of construction finance. Nigeria's real estate and construction sector contributed over N77 trillion to the economy in 2025, yet there is no unified regulatory system. The proposed measures include developer registration, escrow protection, land value management, construction quality, urban renewal, a Housing Data Observatory, a Housing Finance Authority, and a diaspora investment window.

Akinsulire highlighted the need to assess the reform's success based on greater trust, improved buyer finance access, and increased construction finance access. He welcomed the potential of the Housing Data Observatory to enhance transparency and market intelligence but warned that data alone cannot boost housing supply. Akinsulire also pointed out the affordability issue, urging a focus on the payment duration rather than just the property price.

For instance, a N60 million home might be unaffordable if paid over two years, but over 30 years, it could become affordable. Nigeria's mortgage-to-GDP ratio is between 0.02 and 0.07 percent, compared to around 30 percent in South Africa and 70 percent in the UK, highlighting the substantial gap in mortgage market depth. Mixta Africa is developing starter homes to cater to the mass market, emphasizing developer-led innovation as a crucial factor in improving housing affordability.

The company supports tying escrow releases to independently verified construction milestones and pairing buyer protection mechanisms with sustainable construction finance to ensure credible developers can meet the growing demand.