FG raises mortgage ceiling to N85m, targets 2,000 loans annually

Nigeria's federal government has raised the mortgage loan ceiling to ₦85 million, a move designed to deepen access to housing finance and strengthen regulation within the real estate sector. The directive was issued by the Minister of Housing and Urban Development, Dr. Muttaqha Rabe Darma, during the BusinessDay Real Estate Conference in Abuja.

The increased ceiling is expected to enable the Federal Mortgage Bank of Nigeria (FMBN) to approve a minimum of 2,000 mortgages each year. Additionally, contributors to the National Housing Fund (NHF) will be able to access up to 25 percent of their retirement savings as equity for home ownership.

Addressing the nation's growing rent burden, Darma outlined several proposed measures. These include establishing a national rent registry, registering large-scale landlords, enforcing stricter rules against illegal conversion of residential buildings, and introducing a model tenancy law to protect both landlords and tenants. The ministry is also advancing its Land4Growth initiative and the digitization of land administration through the e-Certificate of Occupancy program.

The government acknowledges Nigeria's significant housing deficit, estimated at approximately 15 million inadequate housing units as of 2025, according to the National Housing Data Technical Committee. The Renewed Hope Social Housing Program remains on track to deliver hundreds of housing units in each of the country's 774 local government areas.

Darma highlighted the ministry's commitment to stakeholder engagement, inviting developers, investors, financial institutions, professional bodies, and tenant associations to contribute to proposed regulatory reforms. He emphasized the need for a robust policy framework to make housing projects bankable and attractive for investment. The minister also decried the loss of savings to unlicensed developers and the absence of safeguards like escrow arrangements for homebuyers, noting that despite real estate's substantial contribution to GDP, a lack of comprehensive regulation undermines investment and confidence. Proposed reforms under the National Housing and Built Environment Regulation Policy (NHBERP) aim to introduce developer licensing, escrow protection, construction quality assurance, and a data observatory to enhance transparency.

“

The projects that will define Nigeria’s housing future are not yet built. The capital that will fund them is not yet fully mobilized. But the policy framework that will make them bankable, safe, and worth investing in is being written now. Come and help write it.