Affordable Housing: FG and States Push for Lower Mortgage Rates and Longer Repayment Terms

The federal government, along with state governments, has started plans to make mortgage and land systems easier. This is to help speed up housing delivery across Nigeria.

Nasiru Dantsoho, the Sokoto State Commissioner for Lands, Housing, Survey and Town Planning, said this at the opening of the 15th National Council on Lands, Housing and Urban Development meeting on Monday in Sokoto.

The commissioner wants interest rates on mortgage loans to drop to single digits. He also suggested extending the mortgage repayment period from 25 to 35 years to make it easier for people to pay back.

Mr Dantsoho called for better mortgage access for Nigerians in the informal sector. This includes traders and farmers, who are often left out of housing finance plans but make up a large part of the population.

He urged financial institutions, including the Federal Mortgage Bank of Nigeria (FMBN), to offer suitable funds and flexible repayment plans for seasonal earners like farmers, who can pay back after their harvest.

The commissioner also highlighted the need for states to digitise land administration. This will make the system more efficient and transparent.

Mr Dantsoho mentioned that the meeting aims to ensure that policies help every citizen access decent housing. He praised Governor Ahmed Aliyu for focusing on urbanisation. He noted that Sokoto has changed a lot from a mostly rural area to a growing urban city. Anyone who visited the state four or five years ago would see these big changes.

He pointed out that Nigeria has a housing shortage of over 14.5 million units. About 50.6 million people live in unsafe homes, which he described as a serious issue.

In his speech, Mukhtar Umar, the Director of Planning, Research and Statistics at the Federal Ministry of Housing and Urban Development, said this year's meeting is important to look at challenges in the housing sector. They want to find practical solutions to improve housing delivery in the country.

He explained that the meeting will go through stages. This includes examining memoranda by directors and technical officers in various working groups. They will look at issues, challenges and proposed solutions.

According to him, permanent secretaries from the states, the Federal Capital Territory and the federal ministry will review the results of the discussions. They will refine and harmonise recommendations to ensure that policy directions are clear.

Mr Umar added that the Minister of Housing and Urban Development, the Minister of State and state commissioners will review the reports. They will discuss memoranda and provide the necessary policy guidance.

He also noted that the final council session will check the progress of decisions made at the last meeting in Ilorin, Kwara. They will look at what has been achieved, identify any outstanding issues and strengthen accountability.

The director said the council will also decide on the date and venue for the 16th meeting and adopt the communique.

Moyi Tambuwal, the Permanent Secretary of Sokoto State Ministry of Lands, Housing, Survey and Town Planning, said land is not just a physical asset. It is the foundation for livelihood, economic activities, social growth and heritage.

Mr Tambuwal said that the Sokoto State Government continues to pursue reforms. These include digitising land records and speeding up the process for Certificates of Occupancy. They are also providing land for mass housing under the federal government's Renewed Hope Housing Programme.

He noted that these efforts show the state’s commitment to creating a more efficient land administration system.

However, he admitted that the scale of the housing problem needs ongoing reform. There needs to be stronger cooperation and new ideas in housing finance.

The permanent secretary said, "Providing adequate and affordable housing goes beyond just building homes. It requires a good land administration system, accessible housing finance, effective institutions, proper policies and strong teamwork among federal and state governments, as well as the private sector."

He added that access to affordable mortgage finance is key for civil servants, traders, farmers, young professionals and the youth population.

He said the council is a chance to go beyond just identifying problems. They need to find workable solutions, share experiences and improve policies with organizations like the FMBN and Family Homes Funds.

Mr Tambuwal encouraged officials to carefully consider memoranda and challenge existing beliefs. They should find gaps and come up with practical solutions.

He stated that the success of the council will be measured by how much its decisions ease access to land, improve housing finance and speed up the provision of decent and affordable housing for Nigerians.

The News Agency of Nigeria (NAN) reports that the meeting, themed "Strengthening Mortgage, Land and Institutional Systems for Accelerated and Inclusive Housing Delivery," included land administrators and private developers from all 36 states.