The Federal Government has announced the introduction of a Rent-to-Own scheme to provide affordable housing for Nigerians, particularly urban workers and young families grappling with high rents and limited access to home financing.
Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, disclosed this during the 19th Africa International Housing Show (AIHS) held in Abuja with the theme: “Reimagining Housing Through Innovation, Collaboration and Policy.”
Dangiwa said the new scheme, which will be implemented by the Federal Mortgage Bank of Nigeria (FMBN), is designed to reduce the pressure of annual rent payments by allowing Nigerians to pay monthly and gradually own their homes.
“Recognising that not everyone is ready to buy a home outright, we have introduced two groundbreaking interventions—the Rent-to-Own Scheme, which allows eligible Nigerians to move into homes while paying monthly towards ownership, and the Rental Assistance Product, which helps them pay annual rent upfront while repaying in flexible monthly instalments,” he explained.
According to the minister, the government is also committed to the National Urban Renewal and Slum Upgrade Programme, focusing on improving infrastructure, housing quality, and service delivery in underserved communities.
He said these initiatives align with the UN-Habitat Global Action Plan and the Addis Declaration of 2024, which urge African governments to leave no one—and no place—behind in housing development.
Dangiwa added that the broader Renewed Hope Housing Programme includes large-scale Renewed Hope Cities, State-level Renewed Hope Estates, and Social Housing Estates targeted at low-income earners. So far, over ₦70 billion in private investment has been attracted through public-private partnerships to support these programmes.
He noted that the housing crisis in Africa is not just about a shortage of homes, but also about affordability, as many people simply cannot afford the available housing due to widespread low incomes.
FMBN Expands Housing Finance with New Loan Products
Meanwhile, the Managing Director of the Federal Mortgage Bank of Nigeria, Shehu Usman Osidi, announced the rollout of three new mortgage loan products aimed at boosting home ownership.
The products include:
Diaspora Mortgage Loan (to be launched on August 31 in collaboration with the Central Bank of Nigeria and the Nigerians in Diaspora Commission)
Non-Interest Mortgage Loan
Rent Assistance Loan Scheme
Osidi said the new products are designed to accommodate various income levels and promote financial inclusion across the country. “We are bringing products that speak directly to the needs of the people,” he said.
He also disclosed that over ₦18.9 billion had been recovered from loan defaulters through recovery task teams. He, however, noted that the bank’s current capital base of ₦2.5 billion is grossly inadequate, adding that the Federal Government is working to raise ₦500 billion through an inter-agency committee approved by the Federal Executive Council.
Experts Call for Sustainable Solutions
At the event, former Minister of Information, Prof. Jerry Gana, decried the effect of the naira’s depreciation on housing affordability and called on the government to boost local production of building materials to reduce construction costs.
Former Head of State, General Yakubu Gowon (Rtd), represented by Prof. Suleiman Bogoro, stressed the need for sustainable urban planning and equitable housing development.
“The future of Africa’s housing sector depends on our collective ability to innovate, invest, and implement solutions that meet the needs of our growing population,” he said.
