Nigeria Mortgage Market Trails African Peers, Report Finds
Credit Direct says Nigeria’s mortgage market remains underdeveloped, with structural barriers limiting home ownership and access to affordable housing finance.
Nigeria’s mortgage sector remains among the least developed in Africa, limiting access to home ownership despite rising housing demand across the country.
A new Nigeria mortgage market analysis by Credit Direct’s 2025 Nigeria Credit Landscape Report shows that outstanding mortgage loans account for less than one per cent of the country’s Gross Domestic Product (GDP). The report states that total outstanding mortgage assets remain below ₦1 trillion, highlighting the limited reach of formal housing finance in Nigeria.
The report compares Nigeria with other African countries, noting that mortgage lending represents more than 16 per cent of GDP in South Africa and around 2 per cent in Kenya. This wide gap reflects the challenges facing the Nigeria mortgage market and its ability to meet growing demand for affordable housing.
According to the report, several structural issues continue to restrict mortgage growth. These include high borrowing costs, limited access to long-term funding, low household incomes, inefficient land administration, and inadequate property title documentation. Together, these barriers have made formal mortgage financing difficult for many Nigerians.
As a result, many households rely on personal savings, cooperative societies or gradual self-financing to build homes over time. While this approach eventually enables home ownership for some families, it often delays construction and limits wider housing development.
The report recommends expanding long-term funding for mortgage institutions, improving land registration and title systems, and introducing financing models that better reflect the income levels of Nigerian households. It adds that strengthening the Nigeria mortgage market could stimulate growth in construction, manufacturing, financial services and other sectors linked to real estate, while creating jobs and supporting broader economic development.
The full Nigeria Credit Landscape Report 2025 is available from Credit Direct, which says the research draws on extensive market data to assess lending trends and opportunities across the country.
How can Nigeria make mortgage financing more accessible for ordinary households?
