FG proposes N85 million mortgage ceiling, targets 5,000 mortgages by 2028

The Federal Government of Nigeria is proposing to raise the maximum mortgage loan limit for citizens from N50 million to N85 million. This move aims to boost access to homeownership and improve housing finance across the country. Dr Muttaqha Rabe-Darma, the Minister of Housing and Urban Development, revealed this plan during the 15th National Council on Lands, Housing and Urban Development in Sokoto. The government has set targets to provide 2,000 mortgages in 2026 and 5,000 by 2028.

A significant focus of this initiative is to allocate between 30% and 40% of mortgage bookings to informal sector workers. These individuals often struggle to access traditional housing finance due to irregular incomes and limited access to formal lending. Rabe-Darma emphasized that this directive seeks to bridge the gap between workers' contributions to the National Housing Fund (NHF) and the actual delivery of housing finance.

Additionally, plans are underway to establish a National Housing Finance Authority. This entity will oversee regulation and enhance accountability within the housing finance sector. Furthermore, the recently launched Diaspora Mortgage Programme offers opportunities for Nigerians residing abroad to invest in residential properties within Nigeria. The government is also committed to constructing 100 housing units in each of Nigeria's 774 local government areas, with the aim of addressing the country's housing deficit.

Rabe-Darma called for single-digit interest rates on mortgage loans, a review of housing prices, transparent and efficient land registration processes, and the introduction of a National Housing Identification Number. The plans come in the wake of FMBN's impressive performance in 2025, where the bank collected N152.4 billion in National Housing Fund (NHF) contributions, a 48% increase from N103 billion in 2024.

FMBN's lending activity also saw a rise, with housing loan approvals hitting N71.5 billion in 2024, up from N39.7 billion in 2023. This growth is driven by the bank's objective to expand access to affordable homeownership.