SEC and FMBN Partner to Address Nigeria’s Housing Deficit

The Securities and Exchange Commission (SEC) and the Federal Mortgage Bank of Nigeria (FMBN) have announced a strategic collaboration aimed at addressing the country’s persistent housing deficit, with a focus on increasing affordable housing supply and mobilizing private sector investment in the housing sector. The partnership is expected to create innovative financing solutions, improve access to mortgage loans, and accelerate housing delivery across Nigeria.

The initiative was unveiled at a joint stakeholders’ forum attended by regulators, housing developers, financial institutions, and industry experts. Both SEC and FMBN emphasized that bridging the housing gap requires coordinated efforts between government agencies, capital market participants, and private sector developers. By leveraging capital market instruments and mortgage financing solutions, the collaboration aims to expand housing availability for low- and middle-income Nigerians.

Speaking at the forum, the Director-General of SEC highlighted the potential for capital market instruments, such as real estate investment trusts (REITs) and mortgage-backed securities, to fund large-scale housing projects. “We recognize the urgent need to address the housing deficit in Nigeria. Through innovative financial instruments and strategic partnerships, we can mobilize significant private sector resources to support affordable housing,” the SEC chief said.

FMBN, which serves as the apex mortgage finance institution in Nigeria, noted that access to long-term, low-cost financing remains a critical barrier to homeownership. By collaborating with SEC, the bank aims to develop structures that attract institutional investors, enable securitization of mortgage assets, and provide liquidity to mortgage lenders. These measures are expected to reduce financing costs for developers and homebuyers alike.

The housing deficit in Nigeria is estimated to exceed 17 million units, with a significant proportion concentrated among low- and middle-income households. Rapid urbanization, population growth, and inadequate infrastructure have compounded the challenge, making innovative financing solutions essential for bridging the gap. Analysts say that collaborations between regulatory agencies and financial institutions are pivotal in creating a sustainable housing ecosystem.

As part of the partnership, SEC and FMBN plan to develop regulatory frameworks that encourage private investment in housing, ensure transparency in mortgage-backed securities, and promote investor confidence. The collaboration will also facilitate capacity-building programs for developers and financial institutions, enabling them to implement best practices in housing finance and project execution.

Industry stakeholders welcomed the initiative, noting that it aligns with broader national efforts to stimulate economic growth, create jobs, and improve living standards through increased housing supply. Real estate developers highlighted that access to structured financing and capital market participation could help fast-track project completion and reduce the high cost of construction.

The partnership also seeks to address the financing gap faced by first-time homebuyers. By integrating mortgage products with innovative capital market instruments, the collaboration is expected to offer affordable repayment options and expand homeownership opportunities. Analysts argue that such measures are crucial for promoting inclusive economic development and reducing social inequality.

SEC and FMBN further emphasized the importance of public-private collaboration in achieving the country’s housing goals. By leveraging the strengths of regulatory oversight, financial innovation, and market discipline, the partnership aims to create a robust housing finance ecosystem capable of delivering sustainable solutions.

The initiative includes the development of model projects that will serve as benchmarks for affordable housing delivery. These pilot projects are expected to demonstrate the viability of structured financing, attract additional investors, and provide lessons for scaling similar solutions nationwide.

In conclusion, the collaboration between SEC and FMBN represents a strategic and timely response to Nigeria’s housing deficit. By mobilizing private sector investment, deploying innovative financing mechanisms, and creating a supportive regulatory environment, the partnership aims to increase housing availability, enhance homeownership, and contribute to economic growth. The initiative underscores the critical role of coordinated action between regulators, financial institutions, and developers in addressing one of Nigeria’s most pressing social and economic challenges.