Millions of Nigerians still can’t afford 6% FMBN mortgage — Housing Minister

Minister of Housing and Urban Development, Architect Ahmed Dangiwa, on Thursday, affirmed that millions of Nigerians still cannot afford Federal Mortgage Bank of Nigeria (FMBN) products at six percent interest rate.

Dangiwa, who made this observation in Abuja during the 19th Africa International Housing Show (AIHS), acknowledged that the biggest barrier to homeownership in Nigeria is not only the lack of adequate houses, but the inability of many Nigerians to afford them.

He said: “While we continue to address the supply gap, the reality is that even where housing units are available, their costs remain far beyond the reach of the majority of our Citizens. This is the affordability challenge we must all confront if we are to make meaningful progress towards delivering decent and affordable housing for all.

“The Federal Mortgage Bank of Nigeria is the institution that is closest to solving this challenge. It provides the most concessional mortgage products in the market, with single-digit interest rates of 6% per annum, tenors of up to 30 years, and flexible repayment structures under the National Housing Fund (NHF) Scheme.

“Yet, despite these unmatched concessions, many Nigerians – including long-standing contributors to the NHF – still cannot afford to access these mortgage products. This is a reality that we must face boldly, and one that requires fresh ideas, new partnerships, and innovative financing solutions beyond what we have done in the past.”

He maintained that “low interest alone is not enough. We need to think differently, to look for mechanisms that will further scale down the effective cost of mortgages.

“This might involve additional government-backed subsidies or interest buy-downs to lower rates further, introducing flexible income-based repayment models that match what households can realistically pay, forming new partnerships with development finance institutions and capital markets to mobilise cheaper, long-term funds, and developing tailored products for informal sector workers, who make up the bulk of our population. Innovation in affordability must become the central focus of FMBN’s strategy moving forward.”

While acknowledging the recent milestones made by the bank, the Minister harped on the need for FMBN as the leading force in building an inclusive, affordable, and sustainable mortgage finance system for Nigeria to “make these functions work better, faster, and at greater scale, to reach those who need them the most.”

In the bid to deepen its operations by improving on public sensitisation, Dangiwa said: “Earlier in this Show, I announced the Renewed Hope State-by-State Homeownership and Housing Development Campaign – an initiative designed to bridge the gap between federal housing policy and state-level action, while taking homeownership solutions directly to citizens. I am directing FMBN to participate actively in this campaign, alongside other federal housing institutions.

“This is an opportunity for the Bank to showcase its products in every state of the federation, work closely with governors to unlock land and structure bankable housing projects, embed technical support teams to help states design viable homeownership roadmaps, and bring NHF products closer to contributors, eliminating the knowledge and access gaps that persist today.”

READ MORE FROM: NIGERIAN TRIBUNE