House rent is hitting the roof in Nigeria’s commercial capital, Lagos, and other highly populated cities. This is as a result of poor mortgage system, leaving a wide deficit and the people at the mercy of anyone who could build a house for rent.
Now, the government is making attempts to remedy this situation and give more workers more affordable homes.
Recently, affordable housing in Nigeria got a boost, as the Federal Government approves a ₦250 billion Mortgage and Real Estate Investment Fund (MREIF).
This decision is earning the government praise from the Mortgage Banking Association of Nigeria (MBAN).
Furthermore, this initiative announced by the Minister of Finance, Olawale Edun, focuses on providing affordable, long-term housing finance for low- and middle-income earners.
In response, the Mortgage Banking Association of Nigeria (MBAN) commended the move, describing it as a transformative opportunity for Nigerians.
According to a statement signed by the MBAN President, Ebliate MAC-Yoroki and Executive Secretary, Adedeji Ajadi, the fund strategically combines low-cost government seed funding with private sector investments from pension funds and life insurance companies.
Importantly, this innovative financing model promises affordable mortgages with single-digit interest rates and repayment periods of up to 20 years.
As a result, prospective homeowners struggling with high costs will find significant relief.
Furthermore, MBAN has urged Nigerians to seize this opportunity to achieve their homeownership dreams and narrow the country’s widening housing gap.
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Moreover, the initiative aims to revitalise Nigeria’s mortgage banking sector and drive economic growth through job creation and increased activity in real estate and housing construction.
Notably, MBAN’s member mortgage banks and brokers will facilitate access to the fund, ensuring its benefits reach those most in need.
Ultimately, under the leadership of President Bola Ahmed Tinubu, this public-private partnership underscores the government’s commitment to tackling Nigeria’s housing crisis.
By working together, MBAN and stakeholders are turning the vision of affordable homeownership into a reality for millions of Nigerians.
