AG Mortgage Bank Targets 20% Return-on-Equity

AG Mortgage Bank Plc (AGMB) has set a target of a 20 per cent return on equity (RoE) for its shareholders, repositioning itself to deliver one million mortgages within the next five years, as Nigeria’s real estate market gathers renewed momentum.

The bank stated that its ambition is anchored in Project Momentum 2025–2030, a strategic blueprint designed to transform AGMB into a diversified financial services group spanning mortgage finance, housing microfinance, property development, insurance, brokerage, and rental housing services.

AGMB, in its third-quarter (Q3) 2025 Market Intelligence Report (MIR), highlighted a growing investor appetite for real estate as a hedge against inflation and a portfolio diversification tool, amid easing inflationary pressures and stabilising interest rates.

According to the bank, the sheer scale of Nigeria’s residential market, projected at about $2.25 trillion by 2025, underscores the depth of unmet housing demand and aligns with its plan to provide one million mortgages by 2030.

AG Mortgage Bank said it is not only focused on business growth but also on supporting Nigeria’s national housing vision by expanding access to affordable homeownership and promoting sustainable communities that deliver long-term economic prosperity.

“Nigeria’s real estate sector, a critical pillar of the economy, is poised for robust growth in 2025 and beyond, driven by urbanisation, infrastructure investments, and policy reforms,” the bank noted in the report, adding that, the market, valued at about $2.61 trillion in 2025, is expected to grow at a compound annual growth rate (CAGR) of 6.87 per cent to reach $3.41 trillion by 2029.

Speaking on the report, the managing director/chief executive officer, AG Mortgage Bank Plc, Ngozi Anyogu, described the Q3 edition as significant, coming at a milestone period for the institution.

“In September 2025, we proudly celebrated our 20th anniversary, two decades marked by unwavering dedication, impactful innovation, and transformative service to millions of Nigerians,” Anyogu said.

He noted that, from its inception, the bank has evolved into a trusted institution known for tailored financial solutions for individuals, businesses and communities, stressing that AGMB would continue to shape Nigeria’s housing finance industry ‘with integrity, innovation and impact.’

Anyogu also highlighted the bank’s recent product exhibition, which showcased treasury products for institutional investors, sustainability-focused offerings supporting green development, and digital-first solutions for SMEs and entrepreneurs.

The Q3 2025 MIR further showed that the construction sector recorded real growth of 5.27 per cent in Q2 2025, while real estate contributed 12.80 per cent to GDP, expanding by 3.79 per cent. Residential real estate is projected to lead sectoral growth, supported by rapid urbanisation in cities such as Lagos, Abuja and Port Harcourt.