The Securities and Exchange Commission (SEC) and the Federal Mortgage Bank of Nigeria (FMBN) have announced a strategic collaboration to develop a robust Non-Interest Mortgage (NIM) ecosystem.
This initiative aims to provide millions of Nigerians with access to affordable homeownership, particularly those excluded from conventional interest-based loans.
With Nigeria’s housing deficit estimated at over 28 million units, this partnership is seen as a potential game-changer.
It directly addresses the affordability and religious compliance of mortgage products for a significant segment of the population.
According to a statement, SEC will provide the necessary regulatory guidance and framework to facilitate the issuance of Sukuk (Islamic bonds) and other non-interest capital market products to fund these mortgages.
The SEC Director-General, Dr. Emomotimi Agama noted, “Our collaboration with FMBN is pivotal to unlocking long-term financing for the housing sector. By creating a clear regulatory pathway for non-interest mortgage-backed securities, we can attract ethical investors, both domestic and international, to channel funds into this critical area.”
The partnership is expected to provide affordable homeownership options for millions of Nigerians, attract ethical investors, and create a virtuous cycle of funding, construction, and ownership.
It will also stimulate the construction industry, create jobs, and foster greater financial inclusion.
The non-interest mortgage models under consideration include Musharakah, Ijara, and Murabaha.
In a Musharakah arrangement, the bank and the customer jointly purchase a property, with the customer gradually buying out the bank’s share.
In an Ijara arrangement, the bank buys the property and leases it to the customer, with a portion of rental payments going towards ownership transfer.
In a Murabaha arrangement, the bank acquires the property and sells it to the customer at a pre-agreed markup, payable in installments.
This initiative is expected to reduce the housing deficit, stimulate economic growth, and promote financial inclusion in Nigeria.
(FMBN), Shehu Usman Osidi, during a meeting in Abuja, Friday, November 14, 2025.
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