Affordable Housing: FG, States harp on single-digit mortgage, longer repayment

The federal government, in collaboration with state governments, has initiated modalities to ease and strengthen mortgage and land systems for accelerated and inclusive housing delivery in Nigeria.

The Sokoto State Commissioner for Lands, Housing, Survey and Town Planning, Nasiru Dantsoho, stated this at the opening of the 15th National Council on Lands, Housing and Urban Development meeting on Monday in Sokoto.

The commissioner advocated single-digit interest rates on mortgage loans, down from the current double-digit rates, and an extension of mortgage tenor from 25 to 35 years to make repayment more affordable.

Mr Dantsoho also called for the expansion of mortgage access beyond the formal public and private sectors to capture Nigerians in the informal sector, including traders and farmers, who constitute the majority but are often excluded from housing finance policies.

He urged financial institutions, including the Federal Mortgage Bank of Nigeria (FMBN), to provide adequate funds and flexible repayment plans tailored to seasonal earners, such as farmers who could repay after harvest.

The commissioner stressed the need for states to digitise land administration to improve efficiency and transparency.

Mr Dantsoho said the meeting was strategically focused to ensure that policies were geared towards ensuring that every citizen has access to decent housing.
He commended Governor Ahmed Aliyu for prioritising urbanisation and transforming Sokoto from a largely rural setting to an urban city, noting that anyone who visited the state four or five years ago would notice tremendous changes.

He lamented that Nigeria faces a housing deficit of over 14.5 million units, with about 50.6 million people living in unsafe houses, describing the situation as worrisome.

In his speech, the Director, Planning, Research and Statistics, Federal Ministry of Housing and Urban Development, Mukhtar Umar, said this year’s meeting provides a critical platform to examine challenges affecting the housing sector and develop practical solutions to improve housing delivery across the country.

He explained that the meeting was structured into stages that involved detailed examination of memoranda by directors and technical officers through various thematic working groups to review issues, identify challenges, assess proposed interventions and develop clear, practical and actionable recommendations.

According to him, permanent secretaries from the states, the Federal Capital Territory and the federal ministry will consider the outcomes of the technical deliberations to further examine, refine and harmonise the recommendations to ensure that issues requiring policy direction are adequately captured.

Mr Umar added that the Minister of Housing and Urban Development, the Minister of State and commissioners from the states and the FCT would consider the reports and recommendations, deliberate on memoranda and provide necessary policy directions.

He added that the final council session would also review the status of implementing decisions reached at the 14th meeting held in Ilorin, Kwara, to assess progress, identify outstanding issues, and strengthen accountability.

The director said the council would also set the venue and date for the 16th meeting before adopting the communique.

On his part, the Permanent Secretary, Sokoto State Ministry of Lands, Housing, Survey and Town Planning, Moyi Tambuwal, said land remained not merely a physical resource but the basis of livelihood, economic activity, social development and intergenerational heritage.

Mr Tambuwal said in recognition of its importance, the Sokoto State Government continued to pursue reforms, including ongoing digitisation of land records, efforts to reduce processing time for Certificates of Occupancy and provision of land for mass housing development under the Renewed Hope Housing Programme of the federal government.

According to him, these interventions reflect the state’s determination to build a land administration system that is more efficient, transparent and responsive.
He, however, acknowledged that the scale of the housing challenge required sustained reform, stronger institutional collaboration and innovative approaches to housing finance.

The permanent secretary said: “Delivery of adequate and affordable housing requires more than physical construction, but an efficient land administration framework, accessible housing finance, effective institutions, appropriate policies and strong coordination among federal, state governments and the private sector.

“Access to affordable mortgage finance remains critical to expanding home ownership for civil servants, traders, farmers, young professionals and the growing youth population.”

He added that the council provided an opportunity to move beyond identifying challenges to developing workable solutions, share experiences, harmonise policies and strengthen collaboration with institutions such as the FMBN, Family Homes Funds and other stakeholders.

Mr Tambuwal urged technical officials to critically consider memoranda, challenge existing assumptions, identify institutional gaps and develop innovative and realistic solutions that were practical and implementable.

The permanent secretary further noted that the success of the council should be measured by the extent to which its resolutions ease access to land, expand housing finance and accelerate the provision of decent and affordable housing for Nigerians.

The News Agency of Nigeria (NAN) reports that the meeting, themed: “Strengthening Mortgage, Land and Institutional Systems for Accelerated and Inclusive Housing Delivery,” drew land administrators, private developers, among others, as participants from the 36 states of the federation.