Ayo Olowookere is the President of the Mortgage Banking Association of Nigeria (MBAN). He is also the Managing Director of Imperial Homes Mortgage Bank. With over 20 years in the industry, he says Nigeria’s housing finance system needs urgent reform. He believes the time for action is now.
Recent steps by the government show progress. These include the recapitalisation of the Federal Mortgage Bank, over $1 billion in funding for the Family Homes Fund from the African Development Bank, and a $50 million capital raise by the Ministry of Finance Incorporated. These moves signal a new focus on housing. The Federal Ministry of Housing has also launched the Renewed Hope initiative. It aims to build thousands of homes across the country.
However, Olowookere warns that building houses is not enough. The people who want to buy these homes also need support. That support, he says, is still missing.
High interest rates are a major issue. Mortgages have become too expensive for most Nigerians. Many walk into a bank, make an inquiry, and walk out discouraged. Mortgage banks are also struggling. They compete with commercial banks for the same short-term funds. But housing loans need long-term money. This makes it difficult for mortgage banks to operate effectively.
There are other problems too. Land titling takes too long. Getting building approvals is slow and costly. These delays add to the price of homes and drive away investors. Worse still, different ministries work without coordination. Some even compete with each other. This slows down progress and causes confusion.
Olowookere believes reform must be built on collaboration. He points to the Nigerian Mortgage Refinance Company (NMRC) as an example. Mortgage banks helped design it. Today, NMRC offers lower-cost refinancing at around six percent interest. This is a success story. It shows what is possible when the government works with industry experts.
He also compares housing reform to pension reform. The National Housing Fund (NHF) was launched in 1992. It has collected only ₦500 billion in over 30 years. By contrast, the pension system was reformed in 2004. Today, it manages ₦24 trillion from over 16 million people. That’s the power of smart policy.
Olowookere says the government must set one clear goal. For example: give one million Nigerians access to affordable homes. Then, appoint a task force just like the one created for tax reform. That task force would coordinate all efforts. It would unite the housing ministry, finance ministry, and private sector. This is how other sectors have succeeded. Housing can follow the same path.
As MBAN President, Olowookere has one goal: to help mortgage banks drive national development. The numbers are huge. Nigeria has a housing shortfall of nine million homes. At ₦15 million per home, that’s a ₦45 trillion opportunity. Building homes will create jobs. It will grow the manufacturing sector. It will increase demand for services. And it will attract investors.
Olowookere says Nigeria has reformed its telecoms, pensions, and energy sectors. Housing should be next. The country has a real chance to transform lives and grow the economy. But it must act now.
