Nigeria Launches $654M Mortgage Fund to Tackle Housing Deficit

TLDR
- Nigeria plans to set up a 1 trillion-naira ($654 million) mortgage fund to reduce its housing deficit
- The initiative aims to expand access to affordable housing and stimulate construction.
- The first phase of the program has raised 250 billion naira ($164 million)
Nigeria plans to set up a 1 trillion-naira ($654 million) mortgage fund to reduce its housing deficit, which stands at around 28 million homes. The initiative aims to expand access to affordable housing and stimulate construction.
Finance Minister Wale Edun said on Tuesday that the first phase of the program has raised 250 billion naira ($164 million). The funding includes a 40-year, 1% interest loan from the World Bank’s International Development Association. Local pension funds, commercial banks, and insurance firms matched the World Bank loan to reach the initial capital.
The fund is expected to finance long-term mortgages and encourage private sector participation in the housing sector. It forms part of President Bola Tinubu’s broader economic reform program to improve living conditions and drive inclusive growth.
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Key Takeaways
Nigeria’s mortgage market remains underdeveloped, with low access to home loans due to short loan tenures, high interest rates, and limited affordability. The new fund aims to provide longer-term financing at lower rates, making mortgages accessible to more Nigerians. By involving local institutional investors, the government seeks to crowd in domestic capital and build a sustainable housing finance ecosystem. The move also supports broader macroeconomic goals, including job creation, urban development, and financial market deepening. The World Bank’s concessional loan signals global confidence in the housing reform agenda, while the matching funds from local players show rising domestic interest in structured, long-term investment opportunities. Execution, transparency, and effective collaboration with the private sector will be key to achieving scale and impact. The 1 trillion-naira target, once fully raised, could finance hundreds of thousands of new homes and reshape Nigeria’s housing landscape.






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