The Federal Government has announced plans to establish a National Housing Finance Authority (NHFA) as part of a new strategy to make affordable home ownership more accessible to Nigerians.
The proposal was unveiled by the Minister of Housing and Urban Development, Engr. Dr. Muttaqha Darma, during a stakeholders’ validation workshop held in Abuja.
According to the minister, the proposed National Housing Finance Authority will be created under a new National Mortgage Industry Policy aimed at improving access to mortgage financing, reforming the Federal Mortgage Bank of Nigeria (FMBN) and expanding participation in the National Housing Fund (NHF).
One of the key reforms will allow traders, artisans and other workers in the informal sector to join the NHF, with monthly contributions starting from ₦5,000.
Darma said the initiative is designed to promote financial inclusion and give more Nigerians the opportunity to own homes through affordable mortgage financing.
He noted that Nigeria’s real estate sector contributes about 13.4 per cent of the country’s Gross Domestic Product (GDP), valued at approximately ₦41 trillion, making it the nation’s third-largest sector.
According to him, the combined value of the real estate and construction sectors exceeded ₦77 trillion in 2025.
“After the rebasing of our accounts, real estate services alone account for about 13.4 per cent of Nigeria’s GDP, roughly ₦41 trillion. It is our third-largest sector, ahead of telecommunications and crude oil,” Darma said.
Highlighting the importance of stronger regulation, the minister added:
“Dubai is smaller than Kano. The difference is not money. The difference is trust, and trust is manufactured by regulation.”
He explained that the government also plans to establish a National Housing Industry Regulatory Commission to strengthen oversight of property developers and mortgage operators.
According to Darma, the proposed reforms are expected to attract more private sector investment, improve transparency, reduce Nigeria’s housing deficit and support sustainable urban development.
The minister added that the housing reforms form part of the Federal Government’s broader efforts to improve access to affordable housing through land reforms, urban renewal and public-private partnerships.
