SEC and FMBN plan non-interest mortgage framework
Nigeria’s Securities and Exchange Commission and Federal Mortgage Bank have formed a partnership to establish regulatory frameworks for Sharia-compliant housing finance, targeting citizens unable to participate in conventional interest-based lending programs. The collaboration addresses a housing shortage exceeding 28 million units by developing mortgage products based on risk-sharing principles rather than interest charges.
SEC Director General Emomotimi Agama indicated the commission would enable sukuk issuance and alternative capital market instruments to fund residential properties, while FMBN Managing Director Shehu Osidi emphasized expanding access to the National Housing Fund scheme. Housing analyst Ebilate McYoroki characterized the initiative as advancing financial inclusion for previously excluded populations.
Proposed structures include diminishing partnership arrangements allowing gradual equity accumulation, lease-to-own programs converting rental payments toward ownership, and cost-plus sale models with predetermined markup schedules payable through installments.
