It is good news for house renters as the federal government and Federal Mortgage Bank of Nigeria (FMBN) will be launching housing solutions that will enable Nigerians to rent houses with minimum stress.
The federal government says it will be rolling out a rent-to-own scheme aimed at addressing the country’s escalating housing crisis by enabling eligible Nigerians to move into homes while paying monthly instalments toward eventual ownership.
Ahmed Dangiwa, Minister of Housing and Urban Development, who disclosed this at a housing programme in Abuja, explained that the scheme will offer practical housing solutions for urban workers and young families grappling with rising rents and limited access to mortgages.
The minister explained further that the initiative would be implemented by the FMBN, offering two critical support mechanisms, including an option for occupants to gradually own homes through monthly payments and a provision for flexible monthly instalments to cover annual rent.
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“Recognising that not everyone is ready to buy a home, we have introduced two groundbreaking interventions at FMBN—the Rent-to-Own Scheme, which lets eligible Nigerians move into homes while paying monthly toward ownership.
The Rental Assistance Product allows Nigerians to pay annual rent upfront, with flexible monthly repayment options. These are practical measures to reduce housing stress, especially for urban dwellers and young families,” the minister said.
He added that the government is also committed to the National Urban Renewal and Slum Upgrade Programme, which focuses on infrastructure development, housing rehabilitation, and service delivery in underserved communities.
Dangiwa noted that these efforts align with the UN-Habitat Global Action Plan for Slum Transformation and the Addis Declaration adopted at the 2024 Africa Urban Forum, which calls on African governments to leave no one—and no place—behind.
He said these initiatives support the broader Renewed Hope Housing Programme, which includes large-scale Renewed Hope Cities, state-level Renewed Hope Estates, and Social Housing Estates for low-income earners.
These efforts, he revealed, have attracted over N70 billion in private sector investments through public-private partnerships.
Highlighting the affordability challenge, the minister stressed that across Africa, the housing crisis stems not only from a supply shortage but also from a lack of access, noting that many people, even where housing exists, cannot afford it due to widespread low incomes.
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Why Diaspora Nigerians don’t invest in mortgages despite huge remittances
For some reason, Diasporan Nigerians are not willing to invest in mortgages back home despite the huge amount of money they send home annually.
Annual remittances from Nigerians in diaspora are estimated at $20 billion or more, with some sources citing figures between $20 billion and $25 billion annually.
Experts note that for many of these diasporans, the desire to own property back home is strong, but persistent challenges often deter them from taking action.
Chief among these concerns, according to Adedeji Ajadi, CEO, Mortgage Banking Association of Nigeria (MBAN), is the risk of fraud and unreliable land title systems.
“Stories of property scams, double allocations, and ownership disputes are widespread, undermining trust in the market. Poor customer experience further compounds the problem. Opaque processes, delays, and unresponsive communication from agents, lenders, and developers make navigating real estate from abroad difficult and discouraging,” Ajadi explained.
He added that most mortgage products in the market are not tailored to diaspora needs. They often lack clarity on pricing, repayment terms, and eligibility criteria, while failing to consider foreign income patterns and obligations.
Legal enforcement is another critical concern, he said, pointing out that many diaspora investors worry about their ability to enforce property rights or resolve disputes in their absence, especially in cases of default, encroachment, or mismanagement.
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He suggested targeted solutions, such as establishing trusted, diaspora-focused mortgage institutions with clear due diligence procedures and responsive support can restore confidence. Transparent, standardised mortgage products, with digital onboarding and flexible repayment options, would better meet the needs of diaspora clients.
According to him, partnerships with reputable developers and guarantors can also reduce delivery risk and ensure accountability. When supported by secure digital platforms and effective legal safeguards, these reforms can unlock the vast potential of diaspora capital.
With the right blend of trust, structure, and innovation, Nigeria can convert diaspora interest into sustainable investment, boosting housing delivery and driving national economic growth.
