FG unveils rent-to-own scheme as FMBN unveils 3 mortgage loans
The Federal Government says it will roll 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. The Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa stated this during the 19th Africa International Housing Show (AIHS) […]
The Federal Government says it will roll 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.
The Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa stated this during the 19th Africa International Housing Show (AIHS) in Abuja, themed “Reimagining Housing Through Innovation, Collaboration and Policy.” The minister said the scheme will offer practical housing solutions for urban workers and young families grappling with rising rents and limited access to mortgages.
He explained that the initiative would be implemented by the Federal Mortgage Bank of Nigeria (FMBN), offering two critical support mechanisms.
These include 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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He said, “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.”
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 further 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 said, 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.
He said many people, even where housing exists, cannot afford it due to widespread low incomes.
Former Minister of Information, Professor Jerry Gana, said naira’s sharp depreciation has made home ownership unaffordable for the average Nigerian.
He urged the government to ramp up local production of building materials to reduce construction costs.
Former Head of State, Gen. Yakubu Gowon (rtd), said affordable housing impacts health, education and economic output.
He said the government must prioritise sustainable urban planning and equitable development to meet the needs of the growing population.
Represented by Prof. Suleiman Bogoro, former Executive Secretary of TETFund, Gowon said, “The future of Africa’s housing sector depends on our collective capacity to innovate, invest, and implement solutions that meet the needs of our growing population.”
Meanwhile, the Federal Mortgage Bank of Nigeria (FMBN) says it has rolled out 3 mortgage loans to boost housing financing, adding that Diaspora Mortgage Loan is scheduled for launch on August 31
He said the other two products included non interest mortgage loans and the rent assistance loan scheme l.
The bank’s Managing Director, Shehu Usman Osidi, said the diaspora loan would be launched in collaboration with the Central Bank of Nigeria (CBN) and the Nigerians in Diaspora Commission (NiDCOM), as part of efforts to expand access to affordable housing for Nigerians abroad.
He said the products were designed to deepen financial inclusion, accommodate diverse income levels, and improve homeownership across the country. “We are bringing products that speak directly to the needs of the people,” he said.
He disclosed that over N18.9 billion was recovered through recovery task teams and added that recapitalisation efforts were ongoing. “The bank’s capital of N2.5 billion is wholly inadequate,” he said, adding that the Federal Government is working towards raising N500 billion through an inter-agency committee set up by the Federal Executive Council.