- DMO raises N669.94bn in January FGN bond auction
The Minister of Housing and Urban Development, Ahmed Musa Dangiwa, has revealed that Nigeria’s real estate sector is expected to reach $2.25 trillion by the close of 2025.
He additionally disclosed that the industry accounted for about 5.2 per cent of the country’s GDP in 2024.
Speaking at the Saudi Arabia Real Estate Forum in Riyadh, Dangiwa urged global investors, particularly in Saudi Arabia, to explore the vast opportunities in Nigeria’s housing sector.
The event, themed “Balance and Innovation in the Real Estate Landscape,” took place at the Four Points Hotel and featured discussions with high-ranking officials, including Qatar’s Minister of Municipality, HE Eng. Abdullah Al-Attiya and Minister of Construction, Housing, and Infrastructure, HE Dr. Abdulla Muththalib, Maldives.
In a statement issued by his Special Adviser on Media and Strategy, Mark Chieshe, Dangiwa highlighted Nigeria’s significant housing deficit of 28 million units, describing it as a critical investment opportunity.
“Nigeria’s real estate industry made up approximately 5.2 per cent of the country’s GDP in 2024, and is projected to grow in market volume to $2.25trn by the conclusion of 2025.” Nonetheless, there remains significant investment potential, particularly in the Residential Real Estate sector.
Nigerians need homes now more than ever, and you can partner with the Nigerian government to deliver these houses at scale,” he said.
Dangiwa emphasized that the Federal Government’s Renewed Hope Cities and Estates Programme offers an attractive entry point for investors seeking profitable and impactful ventures.
He pointed out that while land acquisition issues continue, the demands for housing are rising due to increased urbanisation and migration.
“The government is addressing this by giving large-scale housing delivery top priority through government-led interventions, creative funding, and public-private partnerships. Furthermore, initiatives are being made to work with state governments to secure land for projects involving affordable housing,” he continued.
During his address, Dangiwa underscored the economic significance of housing, stating, “Housing is a fundamental driver of economic growth, social stability, and national development. However, achieving a balance between affordability and profitability requires addressing challenges like sustainability, cost efficiency, and policy incentives for the private sector.”
He acknowledged concerns about high mortgage rates, which currently reach as high as 30% annually, making homeownership difficult for many Nigerians.
To address this, he said the Federal Government is working to expand and recapitalize the Federal Mortgage Bank of Nigeria with N500 billion, enabling it to offer more accessible single-digit mortgage products.
“The Federal Government is committed to addressing these challenges through initiatives like the Renewed Hope Cities and Estates Programme, the National Social Housing Fund, and strategic partnerships with local and international stakeholders,” he said.
Dangiwa assured investors of the government’s dedication to improving affordability and creating a conducive environment for housing development, emphasizing that collaboration with the private sector is key to unlocking the potential of Nigeria’s real estate sector.
DMO raises N669.94bn in January FGN Bond Auction
The Debt Management Office has declared the successful results of the January 2025 Federal Government of Nigeria bond auction, acquiring a total of N669.94 billion.
From this total, N606.46 billion was allocated among three bond tenors, representing an important advancement in funding essential infrastructure and aiding the federal budget via domestic borrowing.
In a post shared on X (formerly Twitter), the DMO detailed the allotments, 19.30% FGN APR 2029 (N78.86 billion allotted at a yield of 21.79%), 18.50% FGN FEB 2031(N159.29 billion allotted at a yield of 22.5%), 22.60% FGN JAN 2035 (N368.31 billion allotted at a yield of 22.6%).
The auction attracted significant investor participation across the three bond tenors, with yields reflecting prevailing market conditions. This demonstrates continued confidence in Nigeria’s debt instruments, supported by their tax-free status and guaranteed returns.
The government’s commitment to offering sustained financial support for infrastructure and development is shown by the N368.31 billion designated for the 2035 bond, the funds contributed will help fill budget shortfalls and aid essential sectors such as infrastructure, healthcare, and education.
Furthermore, these bonds provide institutional and individual investors with reliable, tax-free investment options.
The DMO is expected to conduct more bond auctions in 2025 to meet the borrowing requirements outlined in the federal budget. Investors are encouraged to monitor future offers and leverage the yields available on FGN bonds.
This latest auction reinforces the government’s strategy of leveraging domestic capital markets to drive economic growth and development.
