Kaduna State Governor Nasir El-Rufai has warned that Nigeria’s housing deficit is growing at an alarming rate of 900,000 units per year. In a passionate speech at the inauguration of 550 housing units in Gombe State, El-Rufai called for the establishment of a national mortgage system to address the crisis. He stressed that it’s impossible for most Nigerians to purchase houses outright with a huge amount of money at once, and a system should be developed that enables buyers to pay for their houses over 25 years at a low rate of interest.
El-Rufai praised Governor Inuwa Yahaya of Gombe State for partnering with private investors to address the housing shortage. He also revealed that Sen. Bola Tinubu’s incoming administration has promised to establish a national mortgage system with single-digit interest repayments over 15 to 20 years. The call for urgent action to tackle Nigeria’s housing deficit has been welcomed by housing experts, who say that it will help to increase access to finance for low-income earners and facilitate the development of affordable housing.
However, it should be noted that Nigeria already has institutions like the Nigeria Mortgage Refinance Company (NMRC), which provides mortgage refinancing and promotes mortgage lending in the country. The Federal Mortgage Bank of Nigeria provides single-digit interest rate loans payable over 30 years. Housing development institutions like the Family Homes Funds have also been established. Nevertheless, El-Rufai believes that the establishment of a national mortgage system is essential to reducing Nigeria’s massive housing deficit.
