FG Moves to Bridge Housing Gap as SEC, FMBN Partner on Non-Interest Mortgage Framework

In a significant move aimed at tackling the nation’s massive housing deficit and deepening financial inclusion, the Securities and Exchange Commission (SEC) and the Federal Mortgage Bank of Nigeria (FMBN) have announced a strategic collaboration to develop a robust Non-Interest Mortgage (NIM) ecosystem.

The partnership, unveiled at a high-level meeting in Abuja, Friday, seeks to create and regulate viable, Sharia-compliant financing structures that will enable millions of Nigerians, particularly those excluded from conventional interest-based loans, to access affordable homeownership.

With Nigeria’s housing deficit estimated to be over 28 million units, the initiative is being hailed as a potential game-changer. It directly addresses a key barrier to homeownership: the affordability and religious compliance of mortgage products for a significant segment of the population.

Director-General of the SEC, Dr. Emomotimi Agama while emphasizing the Commission’s role in ensuring the integrity and stability of the proposed financial instruments, stated that the SEC would provide the necessary regulatory guidance and framework to facilitate the issuance of Sukuk (imicbonds) and other non-interest capital market products to fund these mortgages.

“Our collaboration with FMBN is pivotal to unlocking long-term financing for the housing sector,” Dr. Agama said. “By creating a clear regulatory pathway for noninterest mortgage-backed securities, we can attract ethical investors, both domestic and international, to channel funds into this critical area. This will create a virtuous cycle of funding, construction, and ownership.”

In his remarks, the Managing Director/ Chief Executive Officer of FMBN, Mr. Shehu Osidi, stated that the collaboration marks a critical step in fulfilling the bank’s mandate to provide affordable housing for all Nigerians.

“For a long time, a substantial number of our citizens have been unable to participate in the National Housing Fund (NHF) scheme due to the interest-based nature of conventional mortgages. This partnership with the SEC is a strategic response to that gap. We are committed to developing non-interest mortgage products that are not only ethical and inclusive but also financially sustainable.” Osidi said.