The Federal Government has thrown its weight behind a new initiative designed to expand access to affordable housing, as the Securities and Exchange Commission (SEC) and the Federal Mortgage Bank of Nigeria (FMBN) announced a strategic partnership to develop a comprehensive Non-Interest Mortgage (NIM) framework.
The effort aims to deepen financial inclusion and address Nigeria’s growing housing deficit, estimated at more than 28 million units.
The collaboration, unveiled during a high-level meeting on Friday, focuses on creating and regulating Sharia-compliant mortgage products tailored to Nigerians who are unable to benefit from conventional interest-based loans.
The move is widely seen as a major step toward narrowing the gap between housing demand and availability by offering more accessible and ethical financing options.
SEC Director-General, Dr. Emomotimi Agama, emphasized the Commission’s commitment to safeguarding the transparency and stability of new financial instruments that will underpin the initiative. He noted that the SEC will develop a strong regulatory framework for the issuance of Sukuk and other non-interest capital market products to support long-term housing finance.
According to him, establishing a clear pathway for non-interest mortgage-backed securities will attract ethical domestic and foreign investors and help build a sustainable cycle of funding, construction, and homeownership.
FMBN Managing Director/Chief Executive Officer, Mr. Shehu Osidi, described the partnership as a significant milestone for the bank as it works to provide affordable housing for all Nigerians.
He explained that many citizens have been unable to benefit from the National Housing Fund due to the interest-based structure of existing mortgage options.
Osidi said the collaboration provides a credible avenue to correct this exclusion, adding that the bank is committed to delivering non-interest mortgage products that are ethical, inclusive, and financially viable.
Housing and finance expert, Mr. Ebilate McYoroki, praised the initiative, calling it a long-overdue advancement in financial inclusion. He noted that the framework opens the housing market to underserved groups and could greatly accelerate the pace of housing delivery if implemented with transparency and efficiency.
He added that the initiative also holds significant potential to stimulate the broader economy by unlocking new investment channels.
The introduction of a Non-Interest Mortgage system is expected to boost construction activities, generate employment, and support inclusive economic growth while offering a more accessible path to homeownership for millions of Nigerians.
Non-interest mortgage financing operates on principles of risk-sharing, asset-backing, and fairness, rather than interest accumulation. Under the Musharakah model, the bank and the customer jointly acquire a property, with the customer gradually purchasing the bank’s share until full ownership is achieved.
In the Ijara model, the bank buys the property and leases it to the customer, with rental payments contributing toward eventual ownership. The Murabaha model involves the bank acquiring the property and selling it to the customer at a pre-agreed markup, which the customer repays in installments.
As the SEC and FMBN work toward implementing this framework, the Federal Government’s support marks one of the most significant interventions in Nigeria’s mortgage market, opening a realistic pathway to homeownership for previously excluded segments of the population.
