Wamakko Urges FG to Inject ₦1tn Into Mortgage Bank to Tackle Housing Deficit

Wamakko calls for stronger mortgage financing

Former President of the Real Estate Developers Association of Nigeria (REDAN), Aliyu Wamakko, has called on the Federal Government to inject at least ₦1 trillion into the Federal Mortgage Bank of Nigeria (FMBN) to expand access to affordable housing finance and help address Nigeria’s housing deficit.

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Wamakko said stronger funding for the mortgage institution would enable more Nigerians to access financing for home construction and purchase while supporting activity across the construction and real estate sectors.

He made the call while speaking on the rising cost of building materials and its impact on housing affordability.

Rising Construction Costs Deepen Housing Affordability Pressure

Wamakko identified the rising cost of building materials as one of the major obstacles to affordable housing delivery in Nigeria.

He specifically highlighted the increase in cement prices, noting that a 50kg bag which sold for about ₦7,500 in March 2025 now costs around ₦13,000.

The increase has significantly raised construction costs for developers and individual homebuilders, making the delivery of new housing units more expensive.

The higher cost of construction is also affecting households through increased property prices and rents, as developers and landlords attempt to recover higher development and operating expenses.

Wamakko argued that rising rents should therefore not be viewed solely from the perspective of landlord decisions, as property owners are operating within an environment of substantially higher construction and maintenance costs.

Wamakko Calls for ₦1tn FMBN Injection

Wamakko urged the Federal Government to commit at least ₦1 trillion to FMBN to increase the availability of affordable mortgage finance.

He argued that additional funding would allow the mortgage institution to provide financing to a larger number of Nigerians seeking to buy or build homes.

Greater access to long-term mortgage finance could also reduce the burden of large upfront payments, which remains one of the major barriers to formal homeownership in Nigeria.

For developers, increased mortgage availability could expand the pool of buyers capable of purchasing completed housing units, potentially improving demand and supporting further investment in residential development.

Lower Building Costs Needed Alongside Mortgage Funding

While calling for increased mortgage funding, Wamakko also urged the government to take measures to reduce the cost of cement and other construction materials.

He called for a review of taxes and levies affecting cement production, arguing that lower production and distribution costs could help manufacturers offer building materials at more affordable prices.

Reducing construction costs is particularly important because increased mortgage availability alone may not make housing affordable if the underlying cost of producing homes continues to rise.

A household may have access to mortgage financing but still be unable to afford a property if its final purchase price remains beyond its income and repayment capacity.

Mortgage Finance Remains Critical to Homeownership

Nigeria's mortgage market remains relatively small compared with the size of the country's housing needs, leaving many households dependent on personal savings, informal financing and incremental construction.

A substantial increase in mortgage funding could therefore strengthen the formal housing finance system and create a larger market for professionally developed housing.

Longer-term financing would also allow eligible buyers to spread housing costs over several years instead of relying on large lump-sum payments.

However, the impact of additional funding would depend on the interest rates offered, eligibility requirements, loan tenors and the ability of mortgage institutions to reach lower- and middle-income households.

Housing Finance Must Be Matched With More Housing Supply

Expanding mortgage finance without increasing the supply of affordable housing could create another challenge for the market.

If demand rises faster than the delivery of new homes, increased purchasing power could place additional pressure on property prices.

This makes the relationship between housing finance and housing supply critical.

Government intervention in mortgage funding will have a greater impact if it is accompanied by policies that make land more accessible, reduce construction costs, improve infrastructure and encourage developers to build housing targeted at households with moderate incomes.

Wamakko Seeks Stronger Real Estate Regulation

Wamakko also called for the signing of the Real Estate (Regulation and Development) Bill, commonly referred to as the RECON Bill.

He argued that stronger regulation, combined with improved mortgage financing and lower building material costs, could help create a more structured and affordable real estate market.

A stronger regulatory framework could also improve transparency and confidence among investors, developers and homebuyers, particularly where land transactions, development practices and consumer protection are concerned.

Implications for Developers and Investors

For property developers, improved access to mortgage finance could create stronger demand for completed residential projects.

Developers often face the challenge of delivering housing that is affordable to households while dealing with high land, material, labour, infrastructure and financing costs.

If mortgage institutions can provide affordable long-term financing to qualified buyers, developers may have greater certainty that completed units can reach a broader market.

Investors could also benefit from increased activity in the formal housing market, particularly if government-backed financing stimulates residential development in areas with strong demand and adequate infrastructure.

However, investors would still need to consider construction costs, interest rates, household purchasing power and the availability of serviced land when assessing new housing projects.

Government Intervention Could Shape Housing Affordability

The proposed ₦1 trillion injection highlights the growing demand for government intervention as Nigeria's housing affordability challenge becomes increasingly tied to both financing constraints and construction costs.

For the funding to have a substantial effect on the housing deficit, it would need to support mortgages that households can realistically repay while also contributing to the delivery of new and affordable housing units.

The effectiveness of the intervention would ultimately depend on how the funds are deployed, who benefits and whether mortgage finance is integrated with broader policies aimed at reducing the cost of housing production.

Outlook

Wamakko's proposal places mortgage finance and construction costs at the centre of the debate over Nigeria's housing deficit.

A significant increase in FMBN funding could expand access to homeownership and stimulate housing demand, but its impact would be limited if high building costs continue to push property prices beyond the reach of most households.

A more sustainable response will require the government to address both sides of the housing affordability equation: making homes cheaper to build and making them easier to finance.

For Nigeria's housing market, the combination of deeper mortgage financing, lower construction costs, improved land access and effective regulation could provide a stronger foundation for increasing housing supply and expanding homeownership.

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