SEC and FMBN Partner to Address Nigeria’s Housing Deficit with Non-Interest Mortgages
The Securities and Exchange Commission (SEC) and the Federal Mortgage Bank of Nigeria (FMBN) have launched a strategic partnership to create a non-interest mortgage ecosystem, targeting the nation’s persistent housing deficit. The collaboration, revealed during a high-level meeting in Abuja, aims to provide millions of Nigerians with access to affordable, Sharia-compliant home financing options.
Dr. Emomotimi Agama, Director-General of the SEC, highlighted the commission’s role in ensuring regulatory oversight and market stability. “Our collaboration with FMBN is pivotal to unlocking long-term financing for the housing sector,” he said. “By establishing a clear regulatory framework for non-interest mortgage-backed securities, we can attract ethical investors, both local and international, to support homeownership.”
The initiative focuses on developing viable Sukuk and other Sharia-compliant financial instruments to fund mortgages, particularly for individuals who have historically been excluded from conventional, interest-based loans. The partnership is seen as a key step toward bridging the gap between potential homeowners and accessible financing solutions.
FMBN’s Managing Director, Mr. Shehu Osidi, emphasized the inclusivity of the initiative. “Many Nigerians have been unable to participate in the National Housing Fund scheme due to the interest-based nature of conventional mortgages. This partnership with the SEC offers a practical solution to that barrier. We are committed to creating ethical, financially sustainable, non-interest mortgage products,” he said.
Housing and finance expert Mr. Ebilate McYoroki welcomed the development, describing it as “long overdue.” With Nigeria’s housing deficit exceeding 28 million units, he noted that the initiative could accelerate home delivery, tapping into a previously untapped pool of potential homeowners and investors. If implemented transparently, this partnership could mark a turning point in the country’s drive for inclusive homeownership.
source: Punch