Housing Finance in Nigeria

Overview

This profile is also available in French here.

To download a pdf version of the full 2019 Nigeria country profile, click here.

Despite improving macroeconomics, housing remains a perennial problem in Nigeria. At a projected population of 263 million by 2038, the housing situation in Nigeria calls for an emergency response. 2019 began with the presidential and gubernatorial elections across Nigeria and expectations are that the government will move swiftly to improve the investment climate and the country’s housing sector.  The Abuja International Housing Show has consistently renewed its call for a deliberate, concerted and sustainable involvement of government.

One of the notable interventions has been the creation of Family Homes Funds which is a partnership between the Federal Ministry of Finance and the Nigerian Sovereign Investment Authority. The Fund has the commitment to facilitate and supply 500 000 homes and 1.5 million jobs for low income earners by 2023.   The Real Estate Developers Association of Nigeria has launched the National Real Estate Data Collation and Management Programme (NRE-DCMP), which is designed to ensure comprehensive collation and management of data for planning, pre-construction, construction and post construction in the housing sector.

Nigeria has 34 mortgage banks, 27 commercial banks, and 7 microfinance banks that provide financing for housing demand and supply. The Central Bank of Nigeria (CBN) continues to support the mortgage market in Nigeria with the proposed creation of the Nigerian Mortgage Guarantee Company (NMGC)14 and Mortgage Interest Draw Back Fund. The CBN unveiled a 5-year policy thrust which has made some significant commitments to real estate. With the possible emergence of a mortgage securitisation market, coupled with increased household income due to the new minimum wage, activity in the housing and housing finance subsector might increase.

There are several opportunities to support the growth of Nigeria’s affordable housing sector. The Nigerian diaspora community is approximately 15 million and remittances are projected to be N96.5 billion (US$34.8) billion by 2023. The continued partnerships by private and public stakeholders in the sector are expected to drive and advance the affordable housing agenda.

Find out more information on the housing finance sector of Nigeria, including key stakeholders, important policies and housing affordability:


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2019 edition, which has up-to-date profiles for 55 African countries.

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