Abuja, Nigeria — December 2025: The World Bank has approved a $500 million financing package to support Nigeria’s housing and small business sectors, marking a major step toward inclusive economic growth.
The facility, known as the Nigeria Housing Finance Program (NHFP), is designed to:
- Expand access to affordable mortgage loans for low- and middle-income households.
- Strengthen the capacity of micro, small, and medium enterprises (MSMEs) to access credit.
- Support the development of secondary mortgage markets and housing finance institutions.
The funding will be channeled through the Federal Ministry of Finance, in partnership with the Nigeria Mortgage Refinance Company (NMRC) and selected commercial banks.
Housing Sector Impact
Nigeria faces a housing deficit of over 17 million units, with most citizens unable to access long-term financing. The NHFP aims to:
- Lower interest rates on mortgages.
- Extend repayment periods to 15–20 years.
- Encourage private sector participation in housing development.
MSME Credit Expansion
The program also includes a credit guarantee scheme to help MSMEs secure loans without excessive collateral. This is expected to:
- Improve financial inclusion.
- Stimulate job creation.
- Enhance productivity in agriculture, retail, and services.
Expert Commentary
“This facility is a game-changer for Nigeria’s housing and SME sectors,” said Dr. Aisha Mahmoud, a development economist. “It addresses structural barriers to credit and will help unlock growth at the grassroots level.”
The World Bank emphasized that the program aligns with Nigeria’s National Development Plan 2021–2025, which prioritizes infrastructure, housing, and entrepreneurship.
