FG Plans National Housing Finance Authority to Expand Affordable Home Ownership

By Sabiu Abdullahi

The Federal Government has announced plans to establish a National Housing Finance Authority (NHFA) as part of efforts to improve access to affordable housing finance across Nigeria.

The proposal was unveiled by the Minister of Housing and Urban Development, Muttaqha Darma, during a stakeholders’ validation workshop held in Abuja on Tuesday, according to the News Agency of Nigeria (NAN).

Darma said the proposed authority would be created under a new national mortgage industry policy. He explained that the initiative would strengthen mortgage financing, reposition the Federal Mortgage Bank of Nigeria (FMBN), and widen participation in the National Housing Fund (NHF).

He said the planned reforms would allow traders, artisans and other workers in the informal sector to participate in the NHF. The minister added that contributors would be able to join the scheme with monthly payments starting from ₦5,000.

According to him, the initiative is expected to promote financial inclusion and create more opportunities for Nigerians to own affordable homes.

The minister also highlighted the growing importance of the real estate sector to the country’s economy. He said the sector now contributes about 13.4 per cent of Nigeria’s Gross Domestic Product (GDP), with an estimated value of about ₦41 trillion. He noted that it has become the country’s third-largest sector following the rebasing of the national accounts.

He further stated 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 N41 trillion,” the minister said.

“It is our third-largest sector, ahead of telecommunications and crude oil. With construction added, the two crossed N77 trillion in 2025.

“Dubai is smaller than Kano. The difference is not money. The difference is trust, and trust is manufactured by regulation.”

Darma said improved regulation and stronger housing finance would increase investor confidence and encourage greater private sector investment in the housing industry.

He added that the government is proposing the establishment of a National Housing Industry Regulatory Commission to improve oversight of property developers and mortgage operators.

According to the minister, the planned reforms form part of the Federal Government’s broader strategy to reduce the country’s housing deficit, improve affordability and support sustainable urban development.

Earlier, on January 19, the Federal Government announced a new national housing strategy that focuses on land reforms, urban renewal and public-private partnerships (PPPs) as part of efforts to tackle Nigeria’s housing shortage.