Dangiwa advocates for strategic partnerships to enhance access to affordable housing

• Says sector’s below 0.5% contribution to Nigeria’s GDP disheartening

From Juliana Taiwo-Obalonye, Abuja

The Minister of Housing and Urban Development, Ahmed Dangiwa, has issued a clarion call for increased innovation and collaboration among mortgage bankers and brokers to improve access to affordable housing loans for Nigerians.

Speaking at the 21st Mortgage Bankers and Brokers Conference held over the weekend in Abuja, Dangiwa outlined strategic initiatives aimed at addressing the country’s pressing housing deficit.

The conference, themed *“Strengthening Public-Private Partnerships in Mortgage Banking to Achieve Sustainable Development Goals (SDGs),”* provided a platform for stakeholders to discuss innovative strategies and solutions to enhance the mortgage sector’s impact on low- and middle-income earners.

In his keynote address, Dangiwa highlighted the stark disparity in mortgage loan rates, with commercial rates hovering around 28%, compared to the more favourable 6-7% offered by the Federal Mortgage Bank of Nigeria (FMBN). He urged industry stakeholders to collaborate on developing hybrid mortgage products to make housing finance more accessible to Nigerians within lower income brackets.

“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.

Dangiwa cited the ongoing cross-subsidy initiative under the *Renew Hope Cities* programme as a model for innovative financing. He explained that profits from housing units sold at commercial rates are being used to subsidise units specifically reserved for low- and middle-income earners. This approach, he noted, aims to create a more equitable housing market while addressing Nigeria’s substantial housing deficit.

The minister also addressed regulatory challenges impacting the sector, particularly the *single obligor limit* imposed by the Central Bank of Nigeria (CBN). This regulation restricts financial institutions from lending significant amounts to a single borrower, which Dangiwa described as a critical barrier to growth in the mortgage sector. He called on stakeholders to support FMBN’s advocacy efforts for the removal of this limitation.

Additionally, he welcomed the recent launch of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund, describing it as a promising opportunity 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 that supports our goals for affordable housing delivery,” he remarked.

The minister further underscored the importance of public-private partnerships (PPPs) and sustainable practices in housing development. Drawing insights from the recent World Urban Forum in Cairo, he noted that both government and private sectors are increasingly adopting climate-smart approaches in the development of new cities. “The government and the private sector are now adopting climate-smart approaches to new city developments to achieve the SDGs we want to achieve,” he said.

Dangiwa expressed concern over the mortgage banking and housing finance sector’s contribution to Nigeria’s GDP, which currently stands below 0.5%. He called for renewed commitment among stakeholders to innovate and collaborate effectively to transform this vital sector.

In his earlier welcome address, the President of the Mortgage Bankers Association of Nigeria (MBAN), Ebilate Mac-Yoroki, echoed Dangiwa’s sentiments, calling for critical reforms and enhanced public-private partnerships to bridge Nigeria’s housing affordability gap. He emphasised that inclusive housing finance is essential for achieving Sustainable Development Goal 11 on sustainable cities and Goal 1 on eradicating poverty.

Mac-Yoroki also highlighted progress made since the last conference, including the inauguration of a *Technical Committee on National Housing Data* aimed at establishing a unified housing database—a crucial step toward data transparency in the sector.

He proposed several key reforms, including amending outdated laws such as the Land Use Act of 1978 and introducing foreclosure laws to streamline real estate transactions. Additionally, he advocated for nationwide adoption of the *Model Mortgage Administration Law* and automation of land registries to enhance operational efficiency.

Mac-Yoroki further stressed the need for financial innovation by leveraging assets to issue mortgage-backed securities and digitalising title documents for smoother transactions. “By fostering collaboration, promoting innovation, and addressing key challenges, mortgage banking can become a powerful force for sustainable development,” he concluded.

The conference also featured a presentation by Mr Shehu Usman Osidi, Managing Director of FMBN, who discussed *“Leveraging Technology in Customer Service Delivery.”* Osidi highlighted advancements in technology adoption at FMBN, including artificial intelligence, blockchain, and robotic process automation aimed at streamlining mortgage origination, underwriting, and loan servicing processes.

He announced that FMBN’s Core Banking Application deployment is nearing completion, which will facilitate automated and real-time mortgage processes. Plans are also underway to establish a digital registry to centralise mortgage records and improve transparency in service delivery.

The conference concluded with an award recognising Kayode Omotosho for his enduring leadership as Executive Secretary and CEO of MBAN. The event brought together key players in Nigeria’s housing and mortgage sectors, fostering discussions on strategies to enhance economic contributions while addressing citizens’ housing needs.