Dangiwa Wants Raise in Mortgage Banking, Housing Sector’s Contribution to GDP

•MBAN seeks reforms to accelerate growth

Emmanuel Addeh in Abuja

The Minister of Housing and Urban Development, Ahmed Dangiwa, at the weekend stated that there was the need for the mortgage banking and housing sector to increase its contribution of 0.5 per cent to Nigeria’s Gross Domestic Product (GDP).

Besides, speaking at the 21st Mortgage Bankers and Brokers Conference in Abuja, he called for greater innovation and collaboration among mortgage bankers and brokers to expand access to affordable housing loans for Nigerians.

Dangiwa noted the underwhelming contribution of the mortgage banking and housing finance sector to Nigeria’s GDP, currently below 0.5 per cent, highlighting the renewed commitment to innovation and collaboration to transform the sector.

“We can commit to a better future here and now by committing to do things differently with innovation and better collaboration,” he stressed.

The programme was themed: “Strengthening Public-Private Partnerships in Mortgage Banking to Achieve Sustainable Development Goals (SDGs).”

Also, addressing the disparity in loan rates, Dangiwa urged stakeholders to work together to create hybrid products that bridge the gap between commercial mortgage rates of 28 per cent and the 6-7 per cent offered by the Federal Mortgage Bank of Nigeria (FMBN).

He said: “That way, more Nigerians within the low and middle-income brackets can access affordable housing loans. Of course, this will require intuition, innovation, and sacrifice.”

Dangiwa highlighted the ongoing cross-subsidy initiative under the ‘Renewed Hope Cities’ programme as an example of innovative financing, explaining that a portion of the profit realised from units sold at commercial rates is used to subsidise some of the units reserved for low- and middle-income earners.

Speaking on regulatory challenges, especially the single obligor limit imposed by the Central Bank of Nigeria (CBN), which restricts the amount that financial institutions can lend to a single borrower,  he urged stakeholders to support FMBN’s efforts to advocate for the removal of this limitation, describing it as a key barrier to sector growth.

However, the minister pointed to the recent launch of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund as a promising avenue to attract capital market funds into the housing sector.

He encouraged mortgage bankers and brokers to explore the fund and engage with MOFI to foster collaboration, emphasising the importance of Public-private Partnerships (PPP) and sustainable practices in housing development.

In his remarks, the President of the Mortgage Bankers Association of Nigeria (MBAN), Ebilate Mac-Yoroki, called for key reforms and strengthened public-private partnerships to enhance Nigeria’s mortgage banking sector and bridge the housing affordability gap.

He emphasised the sector’s pivotal role in achieving Sustainable Development Goals (SDGs), noting that inclusive housing finance was essential for realising SDG 11 on sustainable cities and SDG 1 on eradicating poverty.

Mac-Yoroki advocated leveraging assets to issue mortgage-backed securities and digitalising title documents for easier transactions, explaining that by fostering collaboration, promoting innovation, and addressing key challenges, mortgage banking can become a powerful force for sustainable development.

Also speaking, the Managing Director of FMBN, Mr. ShehuOsidi, who delivered a presentation on “Leveraging Technology in Customer Service Delivery”,  highlighted the bank’s progress in adopting cutting-edge technology, such as artificial intelligence, blockchain, and robotic process automation, to streamline mortgage origination, underwriting, and loan servicing.

He emphasised FMBN’s commitment to an integrated IT-driven mortgage ecosystem, with efforts already underway to digitize operations and enhance customer experience.

He said: “FMBN’s Core Banking Application deployment is nearing completion, enabling automated and real-time mortgage processes. Partnerships with emerging technology players aim to introduce innovative tools, including virtual property tours and automated loan processing.

“There are plans to establish a digital registry to centralise mortgage records and improve transparency. Enhancements in service delivery include online portals for account management and simplified loan application processes.”