Mixta Africa's Group Chief Commercial Officer, Adetola Akinsulire, has emphasized the need for a credible construction finance framework to support Nigeria's proposed National Housing and Built Environment Regulation Policy and National Mortgage Industry Policy. Speaking on CNBC Africa's Closing Bell West Africa, Akinsulire noted that regulation and improved access to buyer finance alone will not close the country's housing deficit. The proposed reforms address two of the sector's critical constraints: the trust deficit and buyer finance.
The proposed 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 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 welcomed the potential for improved transparency and market intelligence but cautioned that better data alone would not increase housing supply.
Akinsulire identified three key outcomes to measure the success of the reform agenda: greater trust in the housing market, improved access to buyer finance, and increased access to construction finance. He argued that the affordability debate should extend beyond the headline price of a property to consider the duration over which buyers can pay. A N60 million home, for instance, is unaffordable if buyers have to pay for it in two years, but becomes affordable if they can pay for it over 30 years.
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 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.
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. Akinsulire also identified the proposed diaspora investment window as one of the government's potentially quickest wins, given existing demand from Nigerians abroad.
The proposed National Housing Data Observatory is expected to improve transparency and market intelligence, but Akinsulire cautioned that data alone will not address the housing deficit. He emphasized that construction finance is a critical component of the housing ecosystem, and that the government's reforms should prioritize this aspect. Mixta Africa's comments highlight the need for a comprehensive approach to addressing Nigeria's housing challenges.
The company's call for a credible construction finance framework underscores the complexity of Nigeria's housing challenges. With the country's housing deficit persisting, stakeholders will be watching the government's response to the proposed reforms and the implementation of the National Housing and Built Environment Regulation Policy and National Mortgage Industry Policy. The outcome will likely have significant implications for Nigeria's housing market and economy.
Key points
- A credible construction finance framework is necessary to support Nigeria's proposed housing reforms.
- The proposed reforms address two of the sector's critical constraints: the trust deficit and buyer finance.
- Nigeria's mortgage-to-GDP ratio remains significantly lower than that of other countries, highlighting the need for reforms.
