Housing Minister Urges Banks To Implement Rent-To-Own Housing Plans For Nigerians

To provide creative mortgage products and lower the cost of commercial loans, mortgage banks have been urged by Minister of Housing and Urban Development Ahmed Dangiwa to implement rent-to-own mortgage plans and flexible monthly mortgage loan payback schedules.

Additionally, he encouraged all bank CEOs to take steps to ensure that low- and middle-class Nigerians could obtain reasonably priced mortgages.

He argues that company owners should view housing and house loans as a moral obligation to lower the number of homeless people rather than as a business and profit goal.

Naija News reports that the minister made these comments during his keynote address at the 20th edition of the Mortgage Banking Sub-sector CEO’s Annual Retreat, which took place on Saturday in Abuja.

In his speech, Dangiwa identified issues impeding the nation’s progress in housing finance, mortgage adoption, and housing delivery. He emphasized the importance of employing innovation and creativity to implement solutions at each value chain stage.

Dangiwa highlighted unresolved obstacles plaguing the sector since the retreat began 20 years ago, recalling matters discussed during his tenure as Managing Director of the Federal Mortgage Bank of Nigeria.

He said that “I am pained to note that the same problems that have been militating against the growth of housing finance, mortgage adoption and housing delivery in this country are the same ones that still plague the sector today.”

“You will agree with me that not much has changed. Most of these problems are still with us. This emphasizes the need for all players to find ways to navigate the macro, legal and policy bottlenecks. The need for innovation, creativity and effective leadership at every point in the value chain. Leaders are supposed to navigate the complexities of situations to make progress.

“So, while the government works to fix this macro-economic challenge, I still believe that as CEOs of mortgage banks, you can still find creative ways to develop innovative mortgage products that are responsive to the current state of Nigeria’s economic situation. This includes adopting rent-to-own mortgage options and flexible monthly mortgage loan repayments to make commercial loans more affordable.”