Nigeria’s longstanding housing crisis may be edging toward a historic shift as the Securities and Exchange Commission (SEC) and the Federal Mortgage Bank of Nigeria (FMBN) unveiled a collaborative plan to launch a comprehensive Non-Interest Mortgage (NIM) scheme aimed at expanding homeownership access for millions of citizens. The initiative, formally announced at a high-level meeting in Abuja, seeks to deliver an alternative mortgage framework rooted in ethical, Sharia-compliant financing models—an option many Nigerians have long awaited.

The move comes at a critical time. Nigeria’s housing deficit, estimated at more than 28 million units, is one of the largest in the world and continues to widen due to population growth, urban migration, limited construction financing, and the absence of affordable long-term mortgage products. Compounding the challenge is the fact that millions of Nigerians—particularly in the northern states—have been unable to participate in conventional mortgage schemes because they are interest-based, a structure that violates Islamic financial principles.

With this new partnership, the SEC and FMBN aim to dismantle one of the most persistent barriers to inclusive homeownership by designing mortgage products aligned with non-interest financing principles widely used in Islamic finance markets across the Middle East, Southeast Asia, and parts of Africa.

SEC to Chart Regulatory Path for Sukuk and Non-Interest Mortgage Securities

At the announcement event, SEC Director-General Dr. Emomotimi Agama emphasized that the collaboration is not merely administrative but foundational to building a sustainable and scalable housing finance ecosystem. According to him, the Commission will take the lead on creating regulatory guidelines for Sukuk issuances, non-interest mortgage-backed securities, and other asset-linked instruments that can attract long-term investors.

Agama stressed that unlocking continuous funding for housing requires a robust, transparent capital market structure that can mobilize ethical investment from both domestic and international markets. “By laying out a clear and credible regulatory pathway for non-interest mortgage instruments, we can draw in a wide pool of ethical investors. This will, in turn, fuel a cycle of construction, financing, and homeownership that benefits the entire economy,” he said.

He added that a properly structured NIM model would bolster market integrity, safeguard investors, and reinforce financial system stability.

FMBN Focuses on Inclusion and Affordable Ownership

On his part, FMBN Managing Director and CEO Shehu Osidi described the partnership as a strategic response to the limitations of the existing National Housing Fund (NHF). For decades, the NHF’s reliance on interest-based lending has excluded millions of Nigerians who, due to religious beliefs, could not participate.

Osidi noted that the new scheme aims to deliver non-interest mortgage products that are accessible, equitable, and financially viable. He emphasized that the FMBN has already conducted extensive consultations with Islamic finance experts to ensure the products meet global standards while addressing local realities.

“We are committed to creating mortgage solutions that meet the socio-religious needs of our citizens while expanding opportunities for homeownership. This collaboration offers a pathway for millions who have never had access to mortgage financing,” he said.

Industry Experts Applaud the Initiative

Housing finance specialist Ebilate McYoroki praised the initiative as “long overdue,” arguing that non-interest mortgage options could unleash pent-up demand among potential homeowners who have historically remained outside the formal housing finance system. He also noted that the strategy could attract diaspora investors seeking Sharia-compliant real estate opportunities.

How the Non-Interest Mortgage Model Works

The NIM framework will rely on globally recognized Islamic finance structures, each eliminating interest but ensuring profit is earned transparently and through shared risk or asset-backed transactions:

• Musharakah (Diminishing Partnership): The bank and customer co-own the property, with the customer gradually purchasing the bank’s stake until full ownership is achieved.

• Ijara (Lease-to-Own): The bank acquires the home, leases it to the customer, and transfers ownership progressively as the customer makes rental payments.

• Murabaha (Cost-Plus Sale): The bank buys the property and sells it to the customer at a pre-agreed markup payable in installments.

These models ensure transparency, ethical returns, and asset-based financing—making them suitable for citizens seeking non-interest alternatives.

Potential for National Impact

If implemented effectively, the SEC-FMBN initiative could stimulate housing construction, create thousands of jobs, deepen financial inclusion, and contribute to closing Nigeria’s vast housing deficit. It also positions the country to attract substantial non-interest capital, including from international Islamic finance markets valued at over $3 trillion globally.

With both institutions committed to building a coherent regulatory and operational framework, the long-awaited expansion of ethical housing finance in Nigeria may finally be within reach.

The Ogun State Government has announced an ambitious plan to generate N500 billion in Internally Generated Revenue (IGR) to finance the state’s 2026 fiscal year. The target, which marks one of the most aggressive subnational revenue projections in recent years, underscores the Abiodun administration’s push to build a more economically self-reliant and fiscally sustainable Ogun State.

Governor Dapo Abiodun disclosed the revenue goal during the Treasury Board meeting on the 2026–2028 Medium-Term Expenditure Framework (MTEF) and the 2026 budget session held in Abeokuta. According to him, the government is strategically positioning the state to fully harness its industrial strength, expanding infrastructure, and geographical advantages.

Abiodun said the N500 billion target is not merely a fiscal aspiration but a deliberate plan backed by reforms, policy alignment, and a determination to transform Ogun into Nigeria’s most competitive and efficient subnational economy. “We have set an ambitious target of generating N500 billion in Internally Generated Revenue to finance the 2026 fiscal year, as part of our drive to build a stronger and more self-sustaining Ogun State,” he said.

Long-Term Vision: N750 Billion IGR by 2027

The governor also provided insight into the administration’s long-term revenue plan, noting that the state aims to grow its annual IGR to N750 billion by 2027, the final year of his current tenure. This trajectory, he explained, aligns with Ogun’s stature as one of Nigeria’s top investment destinations and its unique position as Lagos State’s closest industrial and economic neighbour.

He emphasized that Ogun’s vast landmass — spanning more than 16,000 square kilometres — gives the state enough room to attract and accommodate investments that Lagos can no longer host due to space constraints and congestion.

“Ogun must leverage its proximity to Lagos and its vast landmass to achieve this target,” Abiodun said. “Our comparative advantage must be fully harnessed to provide what Lagos cannot offer. Innovation, efficiency, and accountability will be our guiding principles as we strengthen Ogun’s economic base.”

MDAs Directed to Develop Bold Revenue Plans

To meet the 2026 revenue target, Abiodun directed the Ogun State Internal Revenue Service (OGIRS) to contribute at least N250 billion. He also tasked other major revenue-generating agencies — including the Ogun Property Investment Corporation (OPIC), the Bureau of Lands, the Ministry of Education, Science and Technology, and the Ministry of Housing — to upscale their revenue mobilization efforts.

He stressed that every Ministry, Department, and Agency (MDA) must take responsibility by developing “bold, creative, and ambitious” revenue initiatives that align with their mandate and operational realities. According to him, the 2026 budget will be anchored on innovation-driven governance, fiscal discipline, and aggressive revenue expansion.

Infrastructure, Urban Renewal, and Economic Expansion

Beyond revenue plans, Governor Abiodun highlighted several development priorities for the coming fiscal cycle, including urban renewal and accelerated infrastructure development. A major focus will be the regeneration of Kara, near Isheri, a corridor that serves as one of the busiest entry points into the state from Lagos.

The governor said the redevelopment of Kara would give the axis a modern and befitting look consistent with Ogun’s reputation as the Gateway State. To ensure fairness and transparency, he announced the creation of an inter-ministerial committee that will oversee enumeration, compensation, and relocation processes for affected individuals and businesses.

According to Abiodun, the state is determined to execute the redevelopment in a way that is both humane and inclusive, ensuring that growth does not come at the expense of residents’ welfare.

“We remain focused on building a prosperous, modern Ogun State — one that reflects the ambition, discipline, and resilience of its people,” he added.

What You Should Know

Ogun has become one of Nigeria’s fastest-growing industrial zones, attracting investments across manufacturing, real estate, agriculture, logistics, and technology. In October 2025, Stellar Steel Company Limited, a subsidiary of China’s Galaxy Group and RSIN Group, signed a landmark agreement with the federal government to establish a $450 million steel plant in the state. The facility, expected to begin operations by mid-2026, will produce hot-rolled coil steel, iron doors, and gas cylinders — significantly reducing Nigeria’s dependence on imported steel products.

As Ogun pushes toward its N500 billion IGR target, the state’s success will depend on how effectively it leverages its industrial appeal, improves internal revenue systems, closes leakages, and sustains investor confidence. The coming fiscal year will test the depth of its reforms — and the strength of its ambition.