Housing Finance in Nigeria


Nigeria has a growing housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

The lowest recorded interest rate on a mortgage in Nigeria is 19 percent, as of September 2016, and requires at least a 25 percent down payment. The average mortgage size is US$ 18 000. The cheapest newly built house by a developer recorded by CAHF is US$ 10 000. Cement prices are lower than the continental average, at US$ 5.35 for a 50-kilogram bag.

With an urbanisation rate of 4.39 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken as the current average microloan size is only US$ 170. Housing production is approximately 100 000 housing units per year, which is inadequate considering the estimated 17 million unit housing deficit. The Nigeria Mortgage Refinance Company, a member of the African Union for Housing Finance (AUHF), is leading mortgage market development, while there is strong government interest in the housing market. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Nigeria can afford.

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 2018 edition, which has up-to-date profiles for 54 African countries.

Download yearbook
View more
View more
View more