FirstBank Managing Director and Chief Executive Officer, Olusegun Alebiosu, has called on the Federal Government to take a more active role in expanding mortgage finance, arguing that stronger public-sector leadership is essential to addressing Nigeria’s persistent housing deficit.
Speaking at the 20th Africa International Housing Show (AIHS) in Abuja, Alebiosu said private real estate developers cannot single-handedly close the country’s housing gap because of the high cost of construction financing and limited access to long-term funding.
He urged closer collaboration among government, financial institutions, developers and housing agencies to create a more sustainable housing finance ecosystem capable of increasing homeownership across the country.
According to Alebiosu, countries in Europe and North America have successfully expanded homeownership through government-backed mortgage and social housing programmes that reduce financing costs and improve affordability. He said Nigeria could adapt similar models by strengthening policy support, expanding credit guarantees and encouraging long-term funding for residential housing.
The FirstBank chief also advised prospective homeowners to regard homeownership as a long-term financial investment and to select mortgage products that match their income levels and repayment capacity, noting that responsible borrowing is critical to sustaining mortgage growth.
The appeal comes as the Federal Government intensifies efforts to expand affordable housing delivery nationwide.
Representing President Bola Tinubu at the event, the Minister of Housing and Urban Development, Dr Muttaqha Rabe Darma, outlined plans under the proposed Tinubu Mass Social Housing Scheme to deliver about 150,000 affordable housing units across Nigeria. The programme targets the construction of 200 housing units in each of the country’s 774 local government areas in two phases.
The minister also highlighted ongoing housing projects, including 2,888 housing units in Katampe, Abuja, 2,084 units in Ibeju-Lekki, Lagos, and 2,207 units in Lambu, Kano State. He said beneficiaries have already begun taking possession of homes under the New Hope Rent-to-Own programme.
Nigeria is estimated to face a housing deficit running into millions of units, with high interest rates, rising construction costs and limited access to long-term mortgage financing remaining major constraints to homeownership.
FirstBank partnered with the Ministry of Finance Incorporated (MOFI) to launch a single-digit mortgage financing programme offering interest rates from 9.75%, significantly below prevailing commercial lending rates. MOFI Managing Director and Chief Executive Officer, Armstrong Takang, said the agency has disbursed more than ₦130 billion through its Real Estate Investment Fund to support mortgage financing.
Industry analysts say expanding affordable mortgage financing through stronger public-private partnerships could help stimulate the construction sector, create jobs and improve access to quality housing while supporting broader economic growth.
