Housing Reforms Must Also Address Construction Finance, Says Mixta Africa

Bennett Oghifo Mixta Africa has called for Nigeria’s proposed National Housing and Built Environment Regulation Policy and National Mortgage Industry Policy to be supported by a credible construction finance framework, warning that regulation and improved access to buyer finance alone will not close the country’s housing deficit. Speaking on CNBC Africa’s Closing Bell West Africa, Group Chief Commercial Officer, Adetola Akinsulire, said the proposed reforms address two of the sector’s three critical constraints: the trust deficit and buyer finance. “All of these components address two core areas: the trust deficit in the industry, and buyer finance. There is still one leg missing, and that is construction finance.” The reforms follow the Federal Ministry of Housing and Urban Development’s disclosure that real estate and construction contributed more than N77 trillion to Nigeria’s economy in 2025, despite the absence of a unified regulatory framework. The proposed reforms cover developer registration, escrow protection, land value management, construction quality, urban renewal and a National Housing Data Observatory, alongside proposals for a Housing Finance Authority and a structured diaspora investment window. Akinsulire said the success of the reform agenda should ultimately be measured against three outcomes: greater trust in the housing market, improved access to buyer finance, and increased access to construction finance. Commenting on the proposed National Housing Data Observatory, he welcomed the potential for improved transparency and market intelligence but cautioned that better data alone would not increase housing supply. “Data does not provide funding to supply homes.” Akinsulire also argued that the affordability debate should extend beyond the headline price of a property to consider the duration over which buyers can pay. “Affordability is not just the price of the home. It’s the duration it takes for people to pay for it. A N60 million home is unaffordable if you have to pay for it in two years. But give someone the option to pay for that same property over 30 years, and it becomes affordable.” Nigeria’s mortgage-to-GDP ratio remains between 0.02 and 0.07 per cent, compared with approximately 30 per cent in South Africa and 70 per cent in the United Kingdom, highlighting the significant gap in mortgage market depth. Akinsulire also disclosed that Mixta Africa is working on starter homes designed to meet the needs of the mass market, noting that developer-led innovation remains an important lever for improving housing affordability. He identified the proposed diaspora investment window as one of the government’s potentially quickest wins, given existing demand from Nigerians abroad and their familiarity with structured mortgage and property-financing products. Mixta Africa reiterated its position that escrow releases should be tied to independently verified construction milestones, while buyer protection mechanisms must be accompanied by sustainable construction finance. The company believes this combination is essential to ensuring that credible developers can continue to deliver housing at scale.