ASSESSMENT OF HOUSING FINANCE ACCESSIBILITY AND MORTGAGE MARKET PERFORMANCE IN NIGERIA

Abstract

Housing finance enables households to convert future income into present access to housing, yet the capacity of Nigeria's formal mortgage system to perform this role remains contested. This study assesses the structure, performance, accessibility and affordability of housing finance in Nigeria using exclusively secondary data. A documentary and ex-post facto design was adopted, drawing on Central Bank of Nigeria reports, publications of the Federal Mortgage Bank of Nigeria, National Pension Commission, Nigeria Mortgage Refinance Company and World Bank, together with peer-reviewed studies. Trend, ratio, percentage-change and documentary analyses were applied. Results show that Primary Mortgage Bank assets increased from ₦451.95 billion in 2018 to ₦624.06 billion in 2024, while deposits rose by 79.5 per cent. Net loans grew more slowly from ₦229.60 billion to ₦307.51 billion, and the loan-to-asset ratio fell to 49.3 per cent in 2024. Prudential indicators improved after 2021, although the 2024 non-performing loan ratio remained high at 21.86 per cent. NHF lending, mortgage refinancing and Retirement Savings Account equity access widened formal financing channels, but low incomes, financing costs, land-title constraints, documentation requirements, construction costs and limited long-term funding continue to weaken effective access. The study concludes that institutional capacity has strengthened without an equivalent transformation in broad-based affordability. It recommends deeper long-term funding, faster land and mortgage registration, stronger credit-risk management and mortgage products better aligned with household income conditions.