Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has announced a new national mortgage scheme aimed at supporting Nigeria’s poorest and most vulnerable citizens.
He unveiled this during a press briefing after the recent FEC meeting held in Abuja.
The scheme, approved by the Federal Executive Council (FEC), seeks to alleviate the financial burdens of high interest rates, currently around 12 percent, which have made mortgage payments and home purchases unaffordable for many Nigerians.
Mr. Edun emphasised the government’s commitment to creating a more affordable and sustainable mortgage system through collaboration with key stakeholders, including the Nigerian Sovereign Investment Authority (NSIA), the Federal Mortgage Bank, pension funds, investment funds, and insurance funds. He highlighted the critical role of these financial and institutional stakeholders in leveraging long-term pools of money to make housing more affordable.
The scheme will involve innovative financial vehicles, managed by the Ministry of Finance Incorporated and the NSIA, to channel long-term funds held by institutional investors into mortgages and housing construction.
He stressed the need for a collaborative effort from all stakeholders, including the government, private sector, and federal housing authorities, to make housing affordable and drive economic growth.
The new mortgage scheme is a significant step towards addressing the challenges faced by Nigeria’s poorest citizens in accessing affordable housing. With the government’s commitment to creating a more sustainable mortgage system, Mr. Edun expressed optimism that the scheme will contribute to value-added employment and economic growth in the sector.
