By Samaila Emmanuel Bzugu
The Minister of Housing and Urban Development, Ahmed Musa Dangiwa, has called on the mortgage sector to innovate and collaborate to make affordable housing a reality for Nigerians. Speaking at the 21st Mortgage Bankers and Brokers Conference in Abuja, Dangiwa emphasized the need for creative solutions to address the housing deficit in the country.
The minister highlighted the importance of public-private partnerships and sustainable practices in housing development. He also drew attention to the low contribution of the mortgage banking and housing finance sector to Nigeria’s GDP, currently below 0.5%.
Cross-subsidy initiatives, where a portion of the profit from units sold at commercial rates is used to subsidize units for low- and middle-income earners
To address these challenges, Dangiwa proposed strategies such as cross-subsidy initiatives, where a portion of the profit from units sold at commercial rates is used to subsidize units for low- and middle-income earners. He also called for the adoption of innovative financing models, such as mortgage-backed securities.
The conference brought together key players in the housing and mortgage sectors, providing a platform for deliberations on strategies to boost the sector’s contribution to Nigeria’s economy while addressing the housing needs of its citizens.
In a related development, the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) has been launched to provide low-cost mortgage financing options for eligible Nigerians. The fund is designed to be market-driven while adhering to all regulatory standards.
