Developer calls for mortgage reforms, says high land costs undermine affordable housing

Topsy Essien, managing director, BigHomes, has called on the Federal Government and the Federal Capital Territory Administration (FCTA) to tackle the escalating cost of land and reform Nigeria’s mortgage system, describing both issues as major obstacles to affordable housing delivery in the country.

Speaking during the commissioning of Ivy’s Court, a newly completed six-unit four-bedroom terrace project in Abuja, Essien said that land alone accounts for nearly 60 percent of total construction costs, pushing homeownership beyond the reach of many Nigerians.

“Sixty percent of the cost of a building is land. If the government provides land directly to developers committed to affordability, we can deliver these homes for N50 million or even less,” he said.

He warned that widespread land racketeering, multiple allocations, and speculative hoarding have distorted the market, pushing developers to buy land at inflated rates that are transferred to buyers.

Essien called for clear and transparent land allocation policies, urging the FCTA to prioritise genuine developers with proven capacity to deliver quality and affordable mini-estates, rather than allocating large portions of land to private individuals who resell at huge prices.

According to him, eliminating land cost alone could reduce the price of housing by more than 50%, enabling developers to deliver homes including bungalows — for as low as N15 million in select locations.

Beyond land reforms, Essien also pushed for an overhaul of Nigeria’s mortgage structure, noting that the current loan limits offered by the Federal Mortgage Bank of Nigeria (FMBN) are too low to make meaningful impact.

“The mortgage amount an average person should be able to access must be tangible. You cannot give someone a loan that cannot buy a home,” he said.

He urged the government to increase mortgage ceilings and introduce targeted subsidies for affordable housing, similar to interventions in other critical sectors of the economy.

A subscriber, Andy Adaji, in his remarks, urged the government to deepen public-private partnerships (PPPs) with reputable developers to widen access to mortgages and boost affordable housing supply.

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