A former President of the Real Estate Developers Association of Nigeria (REDAN), Aliyu Wamakko, has faulted the federal government’s allocation of N150 billion to the Ministry of Finance Incorporated (MOFI), for the construction of houses.
Wamakko, in a statement on Tuesday – today, February 25 – noted that the Ministry of Finance, by law, is not responsible for housing projects but the Ministry of Housing.
According to him, the Federal Mortgage Bank currently operates on a capital base of just N2.5 billion, an amount he said, is woefully inadequate for an institution tasked with providing mortgages in a country with a housing deficit exceeding 37 million units.
He argued that if the government is advancing its Renewed Hope Housing Initiative, it must prioritise the recapitalisation of the Federal Mortgage Bank of Nigeria (FMBN).
While commending the ongoing discourse around the federal government’s efforts to address Nigeria’s housing deficit, Wamako, however, expressed “deep concern over the allocation of N150 billion to the Ministry of Finance Incorporated (MOFI) real estate investment fund, while critical institutions like the Federal Mortgage Bank of Nigeria (FMBN) remain grossly underfunded.”
“The Federal Mortgage Bank currently operates on a capital base of just N2.5 billion, an amount woefully inadequate for an institution tasked with providing mortgages in a country with a housing deficit exceeding 37 million units.
“The FMBN relies heavily on the 2.5% contributions from workers under the National Housing Fund (NHF), a model that is neither sustainable nor sufficient to meet its operational needs.
“From maintaining nationwide offices to powering generators, purchasing vehicles and managing basic supplies, the bank is stretched thin, yet it is expected to deliver affordable housing and mortgages. This is simply not feasible under the present circumstances.
“If the federal government is advancing its Renewed Hope Housing Initiative, it must prioritise the recapitalisation of the FMBN. Over 4.3 million Nigerians have contributed to the NHF for the past 30 years, yearning for homes, yet the bank lacks the capital to deliver on this mandate.
“Without significant funding, optimal performance from the FMBN will remain a distant dream. I propose two clear paths forward: either channel funds directly to the Federal Ministry of Housing, where the current Minister has demonstrated commendable progress, or inject capital into the FMBN to empower it to provide affordable housing to Nigerians.
“The Renewed Hope Housing Initiative aims to deliver 500,000 housing units annually—a target I believe is achievable with the right financial backing.
“President Tinubu’s campaign promise to build one million housing units per year underscores the urgency of this issue.
“However, I find it perplexing that the Minister of Finance is being positioned to oversee housing provision and mortgages when we have a dedicated Minister of Housing and the FMBN, both of who are better equipped to execute this mandate.
“Nigeria faces multifaceted challenges—insurgency, banditry, floods, fires, and urban-rural migration—all of which exacerbate the housing crisis. These issues demand a focused and well-funded response,” Wamako argued
He commended the Minister of Housing, who had served as Managing Director of the FMBN, for showing “remarkable leadership in driving initiatives like the construction of 10,112 housing units across 14 active sites within 19 months.”
“His efforts deserve the full support of the government through adequate funding,” the former REDAN boss said.
Thanking the chairman of the Senate Committee on Housing and Urban Development for his efforts regarding the issue he raised, Wamako urged the federal government “to redirect resources to the appropriate authorities—the Ministry of Housing or the FMBN—to ensure the Renewed Hope Agenda translates into tangible results for Nigerians.”
“The housing deficit is a national emergency, and with proper funding, we can turn the tide. The will is there, the expertise is available—now, the funds must follow,” he surmised.
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