FG to Launch ₦1trn Low-Interest Mortgage Fund—Edun

FG to Launch ₦1trn Low-Interest Mortgage Fund—Edun

JOEL OLADELE, Abuja

In a virtual briefing, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the government’s plan to launch a ₦1 trillion low-interest mortgage fund aimed at stimulating the housing sector.

This initiative is part of a broader strategy to enhance Nigeria’s economic stability and foster sustainable growth.

The briefing, attended by selected media representatives, highlighted the government’s commitment to improving fiscal management and driving economic development.

According to a statement signed by the Director of Information and Public Relations, Mohammed Manga, Edun reported that Nigeria has made considerable progress in its economic stabilization efforts over the past 18 to 20 months.

“We have successfully pulled back from the brink of a fiscal crisis,” Edun stated, highlighting that the country achieved a GDP growth of 3.84% in the fourth quarter of 2024, which is close to the annual target of 3.4%. He also noted that inflation is beginning to ease, government revenues are increasing, and the exchange rate is showing signs of improvement.

During the briefing, Edun emphasized a 20% increase in government revenue over the past year, alongside a reduced budget deficit and a decline in debt servicing as a percentage of revenue.

“Our commitment to responsible spending and stronger fiscal management is unwavering,” he asserted.

He outlined plans to raise the tax-to-GDP ratio to 18% within the next 18 months through enhanced compliance, digitization, and broadening the tax base.

Highlighting the role of the private sector as a key driver of economic growth, Edun reiterated the importance of private sector investment in the next phase of Nigeria’s economic development.

The upcoming ₦1 trillion low-interest mortgage fund, supported by both public and private financing, is expected to stimulate the housing sector significantly. Additionally, he revealed that pension funds and institutional investors are being mobilized to finance 5,000 kilometers of roads under the Highways Management and Development Initiative.

While reaffirming the government’s commitment to diversifying the economy, Edun acknowledged the continued significance of oil revenue. He outlined plans to expand domestic refining capacity to 1.2 million barrels per day and create a secure, investor-friendly environment in the oil sector.

“We encourage exporters to focus on domestic and regional markets to mitigate the impact of global shocks, including recent tariff policies introduced by the United States,” he added.

With Nigeria’s average national age at 16.9 years and over 600,000 graduates entering the job market annually, Edun stressed the urgency of implementing youth-focused economic policies. He mentioned upcoming funding mechanisms to support young entrepreneurs and highlighted the recent launch of a national sports empowerment program by President Tinubu in Ogun State.

In conclusion, Edun called for equity investment, privatization, and strategic partnerships.

“This is a time for collaboration,” he stated, reaffirming the government’s commitment to creating a business-friendly environment that fosters sustainable and inclusive growth for all Nigerians.