FG plans to raise maximum mortgage loan to ₦85m: what it means for you

The Federal Government is proposing to raise the maximum mortgage loan from ₦50 million to ₦85 million, the Minister of Housing and Urban Development, Muttaqha Rabe Darma, said on Thursday, 15 October 2026. He spoke at the 15th meeting of the National Council on Lands, Housing and Urban Development in Sokoto, Tribune Online and the Voice of Nigeria reported.

He also said the government is “targeting 5,000 mortgages by 2028”, up from a target of 2,000 this year, according to The Gazette.

Why does it matter to you?

The ceiling decides how much a worker can borrow towards a home. The ₦50 million figure is the current cap on National Housing Fund (NHF) mortgage loans from the Federal Mortgage Bank of Nigeria (FMBN), which the bank raised from ₦15 million in February 2025, Dataphyte reported at the time.

NHF loans are cheap by Nigerian standards. FMBN’s loan conditions cap the interest rate at 6% a year, as set by the National Housing Fund Act, with up to 30 years to repay. By comparison, the Central Bank of Nigeria’s benchmark rate is 23% after a cut in September, according to the CBN.

What else did the minister announce?

• More loans from contributions: “The federal government is directing the Federal Mortgage Bank of Nigeria to increase mortgage disbursements,” he said, with a target of lending at least 70% of the previous year’s NHF contributions as mortgages each year, The Gazette reported.
• Informal workers: 30% to 40% of mortgage bookings would go to workers in the informal sector, who often have irregular incomes and little access to formal lending, Nairametrics reported.
• A new regulator: a planned National Housing Finance Authority to coordinate regulation and improve accountability in housing finance.
• Nigerians abroad: the recently launched Diaspora Mortgage Programme, which he said lets Nigerians abroad invest in homes at home.

These are plans, not yet rules. None of the reports said when the higher ceiling would take effect.

How much would an ₦85 million loan cost each month?

A GistMatrix calculation suggests the bigger limit will mostly help higher earners. Repaying ₦85 million at 6% a year over 30 years works out at about ₦509,600 a month. The current maximum of ₦50 million costs about ₦299,800 a month on the same terms.

The monthly repayment on ₦85 million is more than seven times the ₦70,000 national minimum wage. FMBN’s conditions also say a loan cannot be more than 90% of the property’s cost or value, so if that rule stays, a buyer borrowing the full ₦85 million would need a home worth at least about ₦94.4 million and a deposit of around ₦9.4 million.

The calculation assumes the full 6% rate and the longest 30-year term. Actual offers depend on the lender, the borrower’s income and the property.

Who can get an NHF loan now?

Under FMBN’s conditions, applicants must be Nigerian, over 18, have contributed to the NHF for at least six months and show a regular income. They apply through an FMBN-accredited mortgage lender, not directly to the bank.

Contributors pay 2.5% of their monthly income into the fund, and those who never take a loan can claim their contributions back with 2% interest when they retire or leave service, THISDAY reported, citing FMBN.

What happens next

• The council’s resolutions will serve as a working document for the housing sector, the Voice of Nigeria reported.
• The start date: watch for FMBN or the ministry to say when the ₦85 million ceiling begins, and whether the 6% rate and the 90% limit stay.
• Interest rates: the Chairman of the House of Representatives Committee on Urban Development and Regional Planning, Awaji-Inombek Abiante, called at the same meeting for single-digit mortgage rates, Nairametrics and the Voice of Nigeria reported.

Are you saving for a home or paying into the NHF? Tell GistMatrix what would help you buy.