FG raises mortgage ceiling to N85m, targets 2,000 loans annually

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…Darma orders FMBN to expand access, proposes rent registry, escrow for developers

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By John Alechenu, Abuja

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The federal government has raised the ceiling for mortgage loans to ₦85 million as part of efforts to deepen access to housing finance and strengthen regulation in the real estate sector.

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The minister of housing and urban development, Dr. Muttaqha Rabe Darma, gave the directive at the weekend while presenting a keynote address at the BusinessDay Real Estate Conference 2026 in Abuja.

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According to Darma, the new ceiling is expected to enable the Federal Mortgage Bank of Nigeria, FMBN, to approve at least 2,000 mortgages annually. It will also allow contributors to the National Housing Fund, NHF, to access up to 25 percent of their retirement savings accounts as equity for home ownership.

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Addressing Nigeria’s rising rent burden, Darma said the ministry was proposing a national rent registry, registration of large-scale landlords, stricter enforcement against illegal conversion of residential buildings, and a model tenancy law to protect both landlords and tenants.

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He also spoke on the ministry’s Land4Growth initiative, the ongoing digitization of land administration through the e-Certificate of Occupancy program, and the work of the National Housing Data Technical Committee.

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The committee, he said, has put Nigeria’s housing deficit at about 15 million inadequate housing units as of 2025.

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The minister reaffirmed the government’s commitment to the Renewed Hope Social Housing Program, which he explained remains on course to deliver hundreds of housing units in each of the country’s 774 local government areas.

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The minister announced that the ministry would begin stakeholder engagements this week on proposed regulatory reforms. Developers, investors, financial institutions, professional bodies, and tenant associations have been invited to contribute.

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He said, “The projects that will define Nigeria’s housing future are not yet built. The capital that will fund them is not yet fully mobilized. But the policy framework that will make them bankable, safe, and worth investing in is being written now. Come and help write it.”

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Darma decried the loss of life savings by Nigerians to unlicensed developers and the absence of escrow arrangements and other safeguards for homebuyers.

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He noted that although real estate contributes about 13.36 per cent to Nigeria’s Gross Domestic Product, the lack of a comprehensive regulatory framework continues to undermine investment and public confidence.

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In a bid to address this, Darma said the ministry is developing a National Housing and Built Environment Regulation Policy, NHBERP.

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When operational, this policy will introduce developer licensing, escrow protection for buyers’ funds, construction quality assurance, professional registration, and a National Housing Industry Data Observatory, NHIDO, to improve transparency.

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Under the proposed reforms, developers will no longer be allowed to sell housing units off-plan without a license and without lodging buyers’ payments in regulated escrow accounts.

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He described the move as critical to protecting Nigerians from fraud and aligning the country’s housing market with international standards.

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