The federal government has identified the need for a virile mortgage industry in its efforts to reduce the housing deficit in the country put at about 16 million units.

Minister of State for Works, Housing and Urban Development, Mrs. Grace Ekpiwhre, who was speaking recently at the commissioning of some housing units built by the Federal Housing Authority (FHA) in Abuja, stated that the country required a virile mortgage industry to make housing acquisition easier for Nigerians, stressing that apart from helping the individual, a strong, virile and active mortgage financial sector would stimulate the economy.

In her words: “It has been recognised that the nation requires a virile mortgage industry to make housing acquisition easier for our people. Apart from helping the individual, a strong, virile and active mortgage financial sector would stimulate the economy. It is with this in mind that the Federal Ministry of Works, Housing and Urban Development is encouraging the current efforts of the Federal Mortgage Bank of Nigeria (FMBN) aimed at capitalising the bank optimally to provide a model for long term mortgage financing in Nigeria.”

Ekpiwhre however noted that government is looking at options that will help reduce the burden of the cost of infrastructure to the average Nigerian, who desires to own a home, in pursuance of expert findings which indicate that about 40 per cent of the cost of housing is spent on infrastructure.

The minister called on the management of the Federal Housing Authority (FHA) to adopt suitable technology from anywhere in the world that would facilitate the attainment of the set target, assuring of total support from the government and the removal of any encumbrance that may hinder it in the discharge of its mandate as efforts are made to review the Act establishing it.

She lamented that the nation is grappling with an estimated 16 million housing deficit, stating that “the number of people requiring accommodation in urban and rural areas outweighs the rate of production, yet housing is one of the basic needs of man.”

She noted that the current administration regarded land reform as one of its Seven_point Agenda and thus initiated moves to remove all the encumbrances that hampered the easy acquisition of land both for agriculture and housing development.

“Government has gone ahead in this regard to initiate efforts at amending the Land Use Act which is enshrined in the constitution to make it easier for those with genuine need for land to acquire it. We are confident that the process of legislation and amendment of the Constitution currently in progress at the National Assembly would be concluded successfully to engender the required reforms in our land tenure system,” she stated.