HDAN Warns MOFI Against Fake Housing Facilitators
Nigeria’s housing sector is undergoing significant shifts as government initiatives, financial sector interest, and advocacy group interventions converge to shape the future of affordable housing delivery. While the Federal Government outlines a new programme designed to correct past policy shortcomings, the Central Bank of Nigeria (CBN) signals fresh interest in affordable housing financing, and the Housing Development Advocacy Network (HDAN) warns against fraudulent actors seeking to exploit public funds.
The Federal Government has unveiled a new housing strategy aimed at addressing the nation’s long-standing housing deficit, which exceeds 28 million units, according to industry estimates. Unlike previous initiatives that struggled with implementation and accessibility, the current programme emphasizes affordability, local content, and sustainable financing models.
A key divergence from past projects is the shift from direct government-led construction towards a partnership-driven framework involving private developers, state governments, and cooperatives. This approach, officials argue, is designed to ensure wider reach, reduce bureaucratic bottlenecks, and promote efficiency.
Industry experts note that the initiative will be closely scrutinised, given the mixed outcomes of previous programmes such as the National Housing Fund (NHF) and Federal Housing Authority projects, which were often criticised for high costs and limited allocation transparency.
Central Bank Eyes Affordable Housing Financing
The Central Bank of Nigeria has expressed readiness to explore new financing frameworks to support affordable housing, particularly through mortgage-backed instruments and development finance interventions. Policymakers believe that unlocking long-term, low-cost capital for housing can significantly stimulate job creation, deepen the mortgage market, and expand access to home ownership.
According to housing finance analysts, the CBN’s interest represents a potential turning point in the sector. Nigeria’s mortgage penetration remains below one percent of GDP, compared to over 30 percent in South Africa, highlighting the scale of untapped opportunity.
However, stakeholders caution that without clear regulatory safeguards, such interventions may be undermined by inefficiencies that have historically plagued the mortgage system, including high interest rates, inadequate foreclosure laws, and weak credit infrastructure.
HDAN Warns Against Fake Facilitators
Amid these policy and financing developments, the Housing Development Advocacy Network (HDAN) has raised concerns about fraudulent intermediaries attempting to exploit the government’s new housing drive and financing schemes. The group cautioned the Ministry of Finance Incorporated (MOFI) and other agencies to exercise due diligence in project facilitation to prevent mismanagement and protect public trust.
HDAN’s Executive Director stressed that past experiences have shown how fake facilitators often capitalise on government programmes, leading to diversion of funds and stalled projects. The group urged regulators and financial institutions to implement strict verification processes to safeguard investments in the housing sector.
Outlook
Nigeria’s housing sector stands at a critical juncture. The Federal Government’s policy shift towards partnerships, the CBN’s prospective funding mechanisms, and civil society’s vigilance against fraudulent actors collectively present both opportunities and risks.
For investors, developers, and policymakers, the coming months will determine whether these interventions can meaningfully address Nigeria’s housing shortfall or risk becoming another cycle of unfulfilled promises. The sector’s trajectory will depend on transparent execution, sound financial structuring, and robust regulatory oversight.
