Mixta Africa, a frontline real estate investment and development company, says there is a need to include construction finance in the proposed housing reforms, explaining that it is critical to making the reforms complete and successful.
In line with the ongoing economic reforms, Nigeria is proposing a National Housing and Built Environment Regulation and a National Mortgage Industry Policy that it hopes will address sector challenges, especially the ballooning housing deficit.
Adetola Akinsulire, Mixta Africa’s Chief Commercial Officer (CCO), insists that besides trust and buyer finance, which are included in the proposed reform, access to construction finance will go a long way to determine the success of the reforms.
Akinsulire, who spoke at CNBC Africa’s Closing Bell West Africa in Lagos recently, stressed 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 three critical constraints: the trust deficit and buyer finance. But there is still one leg missing, and that is construction finance,’ he pointed out.
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 said the success of the reform agenda should ultimately be measured against three outcomes, including 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 its potential for improved transparency and market intelligence but cautioned that better data alone would not increase housing supply, saying, ‘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,’ he explained.
Nigeria’s mortgage-to-GDP ratio remains between 0.02 and 0.07 percent, compared with approximately 30 percent in South Africa and 70 percent in the United Kingdom, highlighting the significant gap in mortgage market depth.
The CCO 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 is of the view 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.