The Chief Executive Officer of the Mortgage Banking Association of Nigeria (MBAN), Adedeji Ajadi, has identified weak access to finance, high lending rates, and regulatory bottlenecks as key reasons mortgage uptake remains below one per cent in Nigeria, despite an estimated housing shortfall of over 28 million units.
In an interview with newsmen on Saturday, Ajadi said most Nigerians are excluded from the formal credit system and cannot meet mortgage conditions such as verifiable income or stable employment. He added that interest rates and short repayment periods keep home loans out of reach for many households.
Legal hurdles around land titling and foreclosure also discourage lenders, while limited awareness and mistrust of mortgage institutions push people toward informal construction.
To expand access, Ajadi urged measures to make funding cheaper and loan terms longer. He proposed strengthening the secondary mortgage market through the Nigeria Mortgage Refinance Company, which can provide long-term liquidity to banks.
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Targeted government programmes — such as the Mortgage Refinance Intervention Fund and the Family Homes Fund — could further lower borrowing costs for low- and middle-income earners.
Ajadi also stressed the need for a stable economic environment, saying inflation and exchange-rate swings inflate risk premiums and raise borrowing costs. He called for government-backed guarantees and mortgage insurance to cushion lenders against defaults, encouraging them to offer longer repayment periods.
He maintained that a mix of liquidity, macroeconomic stability, and risk-sharing tools would create a viable path to affordable homeownership for Nigerians.
