Operators in Nigeria’s mortgage sector have sought the need for comprehensive reforms in the housing finance sector, citing that the move is needed to close housing affordability gaps.
They said it will help close the affordability gap in access to housing loans in the country. Nigeria is due for housing finance reform, they said recently, citing telecoms, pension, and subsidy reforms, which have changed the sectors’ narratives, creating jobs, attracting investment, and transforming the sectors for good.
Managing director and chief executive of Imperial Homes Mortgage Bank, Ayo Olowookere explained that the mortgage sector needs a similar break from the past.
The National Housing Fund (NHF) Act is from 1992. The Pension Reform Act came 12 years later, and look at the difference.
The pension industry now manages N24 trillion from 16 million contributors. Compare that to the NHF, which has only half a trillion despite existing much longer. Oloowokere noted that, Nigeria’s housing sector is in crisis, whether the story is about the sales or rental market. There is a gaping shortage of affordable homes that is pushing millions of desperate citizens into slums and informal settlements.
Senior Pastor at Kingsway International Christian Centre (KICC), Mathew Ashimolowo noted that, Nigeria’s 28 million housing units deficit highlights systemic failures.
“Less than 100,000 housing units are built annually which is a far cry from the 700,000 needed annually for the next 10 years to bridge the gap,” he said, citing a World Bank report.
Rapid urbanisation and a booming population, set to exceed 400 million by 2050, are intensifying pressure, particularly in cities like Lagos and Abuja, while affordability remains a core challenge.
Without urgent intervention, the crisis will worsen. Bridging the gap requires coordinated action to lower material costs, expand financing, and accelerate housing delivery. Affordable shelter is not just an economic issue, but also a fundamental right that demands immediate, sustainable solutions.
Funding remains an issue as there exists a gap, according to Olowokere.
“The mortgage banking sector is not really active because there’s no availability of long-term, sustainably priced funds for mortgages. These products are long-term. Over the last two or three years, we’ve seen rates go up due to monetary policy actions. This has affected the availability of well-priced housing funding sources, because mortgage banks are in the same market, competing with everyone else for money,” he said.
He added that, to create risk assets—which mortgages are—you need long-term capital. But the current structure doesn’t support mortgage banking. So, mortgage banks have to improvise.
We’ve been looking at all lending and financing opportunities, which we’ve been doing for a long time, Oloowokere revealed
“This has worsened poverty, deepened inequality, and left a significant portion of the population without basic shelter. This problem, which is acutely pronounced in the urban cities, has reached such an alarming state that urgent intervention is needed to address and provide a long-lasting solution,” the report added.
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