From Isaac Anumihe, Abuja
The Minister of Housing and Urban Development, Ahmed Musa Dangiwa is pushing for the recapitalisation of Federal Mortgage Bank of Nigeria (FMBN) to enable it create affordable mortgages without relying on Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) funding.
He equally advocated more support for Federal Housing Authority (FHA) to enhance its capacity to strengthen housing development in the country.
The minister made the call in Abuja during an interactive session organised by the House of Representatives Committee on Housing and Habitat with a focus on the Federal Government’s establishment of MREIF and the suspension of the Single Obligor Limit imposed by the Central Bank of Nigeria (CBN) on the Federal Mortgage Bank of Nigeria (FMBN).
Dangiwa emphasised that such an approach would enable the construction of cost-effective housing, making homeownership more accessible to low-income Nigerians.
Citing Algeria’s success story where the government delivered one million homes in a year through cross-subsidy mechanisms, Dangiwa proposed allocating 20–30 per cent of funding for housing estates in Nigeria toward cross-subsidisation.
He explained that the approach would ensure uniform infrastructure and external features while adjusting internal finishes to suit varying affordability levels, thereby enhancing homeownership opportunities for low-income Nigerians.
Dangiwa commended the Minister of Finance, Mr. Wale Edun, for securing Federal Executive Council (FEC) approval for MREIF, and described it as a transformative initiative poised to revolutionise the housing sector and call for innovative funding strategies beyond traditional budgetary allocations.
While addressing the restrictive impact of the Single Obligor Limit imposed by the CBN on FMBN, Dangiwa praised the House Committee on Housing and Habitat for intervening to halt the practice.