Dangiwa Seeks Review of Mortgage Laws, Land Use Act
Ahmed Dangiwa, Nigeria’s Minister of Housing and Urban Development, has urged swift action in revisiting mortgage-related laws, including the Land Use Act of 1978, amidst persistent economic challenges.
Speaking at the 20th Mortgage Banking Sub-Sector CEO Annual Retreat in Abuja, Dangiwa stressed the importance of innovation among Chief Executive Officers (CEOs) of mortgage banks.
In his keynote address, the Minister called on mortgage bank leaders to spearhead innovative solutions tailored to the country’s macroeconomic challenges. Emphasizing the need for creative approaches, Dangiwa encouraged the adoption of innovative mortgage products such as rent-to-own options and flexible monthly repayment plans to enhance loan affordability.
Expressing concern about underutilization, the Minister advocated tapping into the Capital Market to secure long-term funds for mortgage loans. He underscored the importance of creativity in making mortgages more accessible and affordable, viewing the provision of housing and home loans as both a business imperative and a moral duty.
The theme of this year’s retreat, “Advancing Sustainable and Affordable Housing in Nigeria: Navigating Macro-Economic, Legislative, and Policy Frontiers,” resonated with challenges discussed over the past two decades. Dangiwa acknowledged persistent issues such as affordability gaps, lack of long-term funds, and regulatory constraints in the sector.
Despite historical challenges, the Minister expressed optimism, citing successful innovations during his tenure as the MD/CEO of the Federal Mortgage Bank of Nigeria. He acknowledged the macroeconomic issue of high-interest rates on commercial mortgages and assured that government efforts were underway to address this challenge. In the meantime, he encouraged mortgage bank CEOs to creatively develop responsive mortgage products.
The address concluded with a commitment from President Bola Ahmed Tinubu to collaborate with stakeholders, including the Mortgage Banking Association of Nigeria (MBAN), to implement comprehensive housing reforms. The outlined agenda includes comprehensive land reforms, adoption of the Model Mortgage Foreclosure Law, and the establishment of a Housing Institutions’ Reform Team.
