The Housing Development Advocacy Network (HDAN), Africa’s leading housing advocacy organisation, has criticised the persistent poor performance of Nigeria’s mortgage sector, warning that millions of Nigerians remain unable to access affordable homeownership.
The organisation, HDAN raised the concern during the Mortgage Bankers Association of Nigeria (MBAN) Mortgage Finance Roundtable held recently in Lagos.
Speaking at the event, the Executive Director of HDAN, Festus Adebayo, lamented the sector’s inability to support Nigerians who need mortgage financing the most. He said the system has not met the desired expectations over the years despite many years of consistent advocacy.
According to him, “Nigeria’s mortgage sector is not delivering for the people who genuinely need it. Too many Nigerians are shut out because the system is not structured to support affordability or accessibility.”
He noted that even those who qualify for mortgage loans face interest rates ranging between 18 and 30 percent, a burden that consumes nearly half of a family’s monthly earnings and makes homeownership unrealistic for most.
He added that the challenges extend far beyond high interest rates. Land titling remains deeply entangled in bureaucracy, slowing down housing transactions and discouraging investors.
Foreclosure laws, he said, are unreliable and slow, making long-term lending unattractive to mortgage banks because they cannot recover their investments easily if borrowers default.
Adebayo stressed that addressing these issues requires more than public declarations. He said the government must rebuild critical pillars of the housing finance system by strengthening the federal mortgage bank of Nigeria, Nigeria Mortgage Refinance Company (NMRC) and ensuring that long-term capital is available to support lower-interest mortgage products.
He also highlighted the importance of government-backed initiatives such as the Family Homes Fund and MREIF ,which, if properly supported, could significantly expand affordable housing for Nigerians.
He pointed out that Nigeria’s macroeconomic instability, driven by high inflation and a volatile currency, makes mortgage pricing unpredictable and discourages banks from offering long-term loans.
He explained that the country urgently needs de-risking tools such as mortgage insurance and government guarantees to restore confidence in mortgage lending.
Discussing affordability, Adebayo noted that even households earning around ₦500,000 monthly continue to struggle with mortgage repayment. He said this reality forces many Nigerians to resort to self-financing and incremental construction, rent-to-own schemes, and cooperative housing contributions.
He added that the country must begin to adopt more flexible homeownership models used globally, including shared-equity systems, income-linked repayment plans, and hybrid rental–ownership arrangements, if it hopes to close the affordability gap.
Looking ahead, Adebayo outlined several steps required to reposition the mortgage sector for improved performance. He said the country must expand refinancing opportunities and long-term capital sources, stabilise the economy, digitise land administration systems, attract private and institutional investment, and create flexible mortgage products tailored to informal workers and young people.
According to him, these reforms are essential if the mortgage industry is to support sustainable homeownership and contribute meaningfully to reducing Nigeria’s housing deficit
