FG plans to raise maximum mortgage limit from N50m to N85m

The Federal Government is considering increasing the maximum mortgage financing limit from ₦50 million to ₦85 million, alongside plans to construct 100 social housing units in each local government area to expand access to affordable homes.

The Minister of Housing and Urban Development, Muttaka Rabe Darma, PhD, disclosed this on Thursday at the closing ceremony of the 15th National Council on Lands, Housing and Urban Development in Sokoto State.

The proposed reforms are aimed at addressing Nigeria’s housing deficit, reducing barriers to homeownership and improving land and property administration across the country.

Darma said the planned social housing scheme would prioritise low-income earners, including primary school teachers and other workers who struggle to afford decent accommodation.

He noted that the high cost of building materials and construction had made homeownership increasingly difficult for many Nigerians, stressing the need for accessible housing finance.

The minister said the government had directed the Federal Mortgage Bank of Nigeria to disburse at least 70 per cent of its annual collections to improve access to housing loans.

He also announced plans to establish a National Housing Finance Authority to strengthen regulation, coordination and accountability in the housing finance sector.

On land administration, Darma said the government was working towards a centralised system that would enable prospective property buyers to verify ownership and check for legal disputes remotely.

He added that the government was exploring a diaspora mortgage programme to enable Nigerians living abroad to acquire houses in their preferred locations.

Meanwhile, the Chairman of the House of Representatives Committee on Housing and Urban Development, Hon. Awaji-Inombek Dagomie, called for the introduction of a unique identification number for every building in Nigeria to improve property records and accountability.

Dagomie said a national property identification system would help authorities establish ownership, generate reliable housing statistics and address concerns about concealed property holdings.

“I want to suggest that we consider a national house identification for every property, for every building,” he said.

According to him, the system would allow authorities to identify properties belonging to individuals through a centralised database, regardless of the number of buildings they own.

He argued that the proposal could also improve property transactions and the administration of estates belonging to deceased persons.

Although he acknowledged that the initiative might be controversial, Dagomie urged stakeholders to consider its potential benefits for housing administration.

The lawmaker also called on federal and state governments to provide long-term mortgage loans at single-digit interest rates, arguing that prevailing borrowing costs made homeownership difficult for low- and middle-income earners.

He further recommended high-rise residential buildings in urban centres to reduce the impact of expensive land on housing costs.

Dagomie also advocated digital land registration, simplified property transactions and stricter enforcement of development control regulations.

He warned that poor urban planning and weak enforcement of building regulations contributed to flooding in cities such as Lagos, Port Harcourt and Abuja.

The lawmaker also urged the government to encourage the use of locally sourced building materials to reduce construction costs.

Earlier, the Sokoto State Commissioner for Lands and Housing, Barrister Nasiru Dantsoho, commended Governor Ahmed Aliyu for providing the support required to host the council meeting.

Dantsoho said the council’s deliberations would help strengthen housing institutions and improve access to decent shelter.

He cited figures indicating that 14.5 million Nigerians lacked shelter, while another 15.5 million lived in unsafe environments, and called for sustained efforts to address the country’s housing challenges.