The Federal Government has unveiled plans to establish a National Housing Finance Authority (NHFA) as part of a broad reform programme designed to improve access to affordable housing finance across Nigeria.

The proposal was announced on Tuesday by the Minister of Housing and Urban Development, Muttaqha Darma, during a stakeholders’ validation workshop held in Abuja.

According to the minister, the proposed authority will be created under a new National Mortgage Industry Policy aimed at improving mortgage accessibility, repositioning the Federal Mortgage Bank of Nigeria (FMBN) and broadening participation in the National Housing Fund (NHF).

As part of the reforms, the government intends to extend NHF participation to traders, artisans and other workers in the informal sector. Eligible contributors will be able to join the scheme with monthly payments beginning from N5,000.

Darma explained that the initiative is expected to deepen financial inclusion while enabling more Nigerians to achieve affordable homeownership.

The minister also highlighted the growing significance of Nigeria’s real estate sector, noting that following the rebasing of the country’s national accounts, the industry now contributes approximately 13.4 percent of the nation’s gross domestic product (GDP), with an estimated value of about N41 trillion.

He further stated that the combined value of the real estate and construction sectors exceeded N77 trillion in 2025.

“After the rebasing of our accounts, real estate services alone account for about 13.4 percent of Nigeria’s GDP, roughly N41 trillion,” the minister said.

“It is our third-largest sector, ahead of telecommunications and crude oil. With construction added, the two crossed N77 trillion in 2025.

“Dubai is smaller than Kano. The difference is not money. The difference is trust, and trust is manufactured by regulation.”

According to Darma, stronger regulatory oversight alongside improved housing finance mechanisms will enhance investor confidence and encourage greater private-sector participation in Nigeria’s housing market.

He disclosed that the government is also proposing the establishment of a National Housing Industry Regulatory Commission to strengthen supervision of property developers and mortgage operators.

The proposed reforms, he added, form part of the Federal Government’s wider strategy to reduce Nigeria’s housing deficit, improve housing affordability and promote sustainable urban development.

Earlier, on January 19, the Federal Government announced that it was intensifying efforts to tackle the country’s housing deficit through a new national housing strategy focused on land reforms, urban renewal and public-private partnerships (PPPs).

Source: TheCable