The Federal Government is scaling up renter-focused housing interventions, including the Rent-to-Own scheme, as part of broader efforts to ease Nigeria’s growing rent burden.
This renewed push comes amid rising concern that a significant number of Nigerians now spend a large share of their income on rent, leaving little for other basic needs. According to available data, the country’s income-to-rent ratio has climbed to about 70 per cent, far exceeding the 30 per cent benchmark recommended by the United Nations.
Minister of Housing and Urban Development, Ahmed Dangiwa, said the government is repositioning existing housing solutions to directly support urban workers and young families struggling with affordability and limited access to mortgage financing.
He explained that the Rent-to-Own scheme remains central to this approach, allowing eligible Nigerians to move into homes and pay monthly instalments over time towards ownership. The model is designed to reduce the upfront financial pressure typically associated with acquiring property, while providing long-term housing security.
“Recognising that not everyone is ready to buy a home, we have introduced two groundbreaking interventions at FMBN—the Rent-to-Own Scheme, which lets eligible Nigerians move into homes while paying monthly toward ownership,” the minister said.
In addition, the government is expanding access through a Rental Assistance Product, which enables tenants to pay annual rent upfront and repay in flexible monthly instalments. This dual approach is expected to ease immediate rental pressures while creating a pathway to ownership for many households.
“The Rental Assistance Product allows Nigerians to pay annual rent upfront, with flexible monthly repayment options. These are practical measures to reduce housing stress, especially for urban dwellers and young families,” Dangiwa added.
Implementation of both interventions is being handled by the Federal Mortgage Bank of Nigeria, which is positioning itself as a key driver of affordable housing delivery under the government’s broader housing agenda.
Beyond direct rental support, the government is aligning these measures with the National Urban Renewal and Slum Upgrade Programme, targeting infrastructure improvements, housing rehabilitation, and enhanced service delivery in underserved communities.
Dangiwa noted that the initiatives also reflect commitments under global frameworks, including the UN-Habitat Global Action Plan for Slum Transformation and the Addis Declaration adopted at the 2024 Africa Urban Forum.
He further linked the interventions to the Renewed Hope Housing Programme, which includes large-scale city developments, state-level estates, and social housing projects aimed at low-income earners. According to him, these combined efforts have already attracted over N70 billion in private sector investment through public-private partnerships.
Highlighting the broader challenge, the minister stressed that affordability remains the core issue across Africa’s housing sector. Even where housing supply exists, many citizens are priced out due to low incomes, reinforcing the need for flexible, renter-focused solutions.
