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HOW MORTGAGES WORK IN NIGERIA by Dennis Isong

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Potential borrowers assess their financial status, calculate affordability, and choose a suitable mortgage type.

Mortgages play a pivotal role in the real estate sector, allowing individuals and families to own homes without the need for substantial upfront payments.

In Nigeria, as in many countries, mortgages are a common means of financing homeownership.

This article aims to provide a comprehensive overview of how mortgages work in Nigeria, covering the key aspects, processes, and considerations.

  1. Types of Mortgages in Nigeria
    In Nigeria, there are various types of mortgages available to suit different needs and financial situations. The most common types include:
    a. Home Purchase Mortgage: This is the traditional form of mortgage used for buying a new home or property.
    b. Home Equity Release Mortgage: This allows homeowners to access the equity in their property to meet other financial needs.
    c. Construction Mortgage: Designed for those building their homes, this type of mortgage provides funds in stages during construction.
    d. Refinancing Mortgage: Allows homeowners to replace an existing mortgage with a new one, often with better terms.
  2. Mortgage Providers
    Mortgages in Nigeria are typically provided by banks, mortgage banks, and other financial institutions. Some of the well-known mortgage banks in Nigeria include the Federal Mortgage Bank of Nigeria (FMBN), which focuses on affordable housing, and commercial banks like Zenith Bank, First Bank, and GTBank.
  3. Eligibility Criteria
    To qualify for a mortgage in Nigeria, individuals must meet certain eligibility criteria, which may include:
  • Proof of regular income
  • Good credit history
  • Down payment capability
  • Legal age (usually 18 years or older)
  • Nigerian citizenship or legal residency
  1. The Mortgage Application Process
    The mortgage application process in Nigeria involves several steps:
    a. Prequalification: Potential borrowers assess their financial status, calculate affordability, and choose a suitable mortgage type.
    b. Documentation: Applicants provide necessary documents such as proof of income, identification, and property details.
    c. Property Valuation: The lender evaluates the property’s value to determine the loan amount.
    d. Credit Assessment: Lenders assess the borrower’s creditworthiness by reviewing credit reports and history.
    e. Approval and Disbursement: Upon approval, the mortgage is disbursed, and the borrower takes ownership of the property.
  2. Mortgage Terms and Conditions
    Mortgages in Nigeria typically have terms ranging from 10 to 25 years. Interest rates can be fixed or variable, and the repayment structure can be monthly, quarterly, or annually.
  3. Mortgage Insurance
    Mortgage insurance is often required, especially for mortgages with smaller down payments. This insurance protects the lender in case the borrower defaults on the loan.
  4. Repayment and Default
    Borrowers must make regular payments to avoid default. Defaulting on a mortgage can result in the lender repossessing the property, so it’s essential to honor the repayment schedule.
  5. Government Initiatives
    The Nigerian government has introduced several initiatives to promote affordable housing and increase access to mortgages. The FMBN, for instance, offers the National Housing Fund (NHF) scheme, which provides affordable mortgage loans to contributors.
  6. Tax Implications
    It’s important for prospective homeowners in Nigeria to be aware of the tax implications associated with mortgages. Mortgage interest paid on a primary residence is often eligible for tax deductions, which can help reduce the overall cost of homeownership. Tax laws and regulations may vary, so consulting with a tax professional is advisable.
  7. Benefits of Mortgages in Nigeria
    Owning a home through a mortgage in Nigeria offers several advantages:
    a. Asset Appreciation: Real estate in Nigeria generally appreciates over time, potentially increasing the value of your investment.
    b. Forced Savings: Paying a mortgage every month encourages disciplined saving, as a portion of each payment goes toward building home equity.
    c. Housing Security: Homeownership provides stability and security for you and your family.
    d. Investment Opportunity: Owning property can open doors to real estate investment and rental income.
    e. Access to Government Schemes: Many government initiatives and incentives are designed to make homeownership more accessible, particularly for low and middle-income earners.
  8. Challenges and Risks
    While mortgages offer numerous benefits, they also come with potential challenges and risks:
    a. Interest Rate Fluctuations: Variable interest rates can lead to fluctuations in monthly payments, impacting borrowers’ budgets.
    b. Economic Factors: Economic downturns can affect borrowers’ ability to make mortgage payments, leading to defaults.
    c. Property Market Volatility: Real estate markets can be unpredictable, potentially affecting property values.
    d. Legal and Documentation Complexities: Navigating the legal and documentation requirements of mortgages can be complex and time-consuming.
    e. Default Consequences: Defaulting on a mortgage can result in foreclosure and the loss of the property.
  9. Expert Advice
    Before embarking on the mortgage application process in Nigeria, it’s advisable to seek expert advice. Consult with financial advisors, real estate professionals, and legal experts to ensure you make informed decisions that align with your financial goals and circumstances.

▪︎Dennis Isong is a TOP REALTOR IN LAGOS.He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE. For Questions WhatsApp/Call 2348164741041

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Kogi Enforcing Ban on Trailer Parks from October 29 – Fanwo

The decision followed credible intelligence reports that some trailer parks in the state, particularly those located at Zariagi and Osara, have become hideouts for criminal elements.

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Kogi State Governor, Ahmed Usman Ododo, has announced that strict enforcement of the ban on trailer parks across the state will start effective from October 29, 2025.

Commissioner for Information and Communications, Kingsley Femi Fanwo, who disclosed this in Lokoja, said that the decision followed credible intelligence reports that some trailer parks in the state, particularly those located at Zariagi and Osara, have become hideouts for criminal elements.

He emphasised that the government cannot fold its arms while such facilities are used to compromise the security of lives and property in the state.“

The directive of His Excellency, Governor Ahmed Usman Ododo, is clear. From October 29, 2025, the state will begin full enforcement of the ban on trailer parks.

Intelligence at our disposal shows that some of these parks, especially those at Zariagi and Osara, harbor criminals who threaten the peace and security of our people.

This is a proactive and preventive measure. We have decided to move ahead of the criminals instead of lamenting after lives might have been lost.

Government will not allow that to continue,” Fanwo said.

He revealed that security agencies across the state have been strictly briefed to enforce the order without compromise, stressing that violators will face the full weight of the law.

The Commissioner further noted that the enforcement is backed by law, as Governor Ododo has already signed into law a bill banning the movement of articulated trucks during the day.

Fanwo urged operators to comply before the enforcement date and called on residents to support the government’s action, stressing that protecting lives and securing communities remain the top priority of the present administration.

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Deported Nigerian Claims Ghanaian Officials Abandoned Him in Togo

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A Nigerian man deported from the United States to Ghana has alleged that he is now stranded in Togo after Ghanaian authorities secretly transferred him and five others across the border without informing Togolese officials.

According to on Wednesday, the man, who spoke anonymously, said he was initially held at a military camp in Ghana after being deported last month along with other West African nationals. He claims Ghanaian officials promised to relocate them to better accommodation but instead covertly transported them into neighbouring Togo via a back route.

“They did not take us through the main border; they took us through the back door. They paid the police there and dropped us in Togo,” he said.

The group, which includes three Nigerians, a Liberian, and others, is now sheltering in a hotel in Lomé, the Togolese capital. None of them have valid documentation, and they are relying on hotel staff to help receive financial aid from relatives abroad.

“We’re struggling to survive in Togo without any documentation,” the man told the BBC. “None of us has family here. We’re just stuck.”

He said life in the Ghanaian military camp was “deplorable,” citing poor water, lack of medical care, and harsh conditions. After complaints to authorities, the group was told they would be moved to a hotel. Instead, they were driven to the Togo border and allegedly coerced under false pretenses.

“When we arrived [at the border], we asked what we were doing there. They told us we needed to sign some paperwork to go to a hotel. We didn’t sign anything,” he said.

The man also shared the personal toll of his deportation. “I have a house in the US where my kids live. How am I supposed to pay the mortgage? My kids can’t see me. It’s just so stressful.”

He is reportedly a member of the Yoruba Self-Determination Movement, an organisation campaigning for an independent Yoruba nation in south-west Nigeria. He fears persecution if forced to return to Nigeria and claims he had court-ordered protection in the US, which should have prevented his deportation. The US government has not publicly addressed this claim.

The deportee was part of a larger group of West Africans — including citizens of Liberia, The Gambia, and Togo — who were flown from US detention facilities to Ghana last month. Human rights lawyers representing the group have filed legal action against both the US and Ghana, citing violations of international protection and due process.

Ghanaian officials, including Foreign Minister Samuel Okudzeto Ablakwa, have defended their decision, saying Ghana accepted the deportees based on “pan-African empathy” and denied receiving any financial compensation.

However, the deal — announced by President John Mahama — has drawn criticism from opposition lawmakers, who are now calling for its suspension until it is properly reviewed and ratified by parliament. Despite the controversy, the government is reportedly preparing to receive an additional 40 deportees.

As the legal battle unfolds and diplomatic pressure mounts, the fate of the stranded deportees in Togo remains uncertain.

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Nigeria’s 65th Independence: Tinubu’s full speech

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NATIONAL BROADCAST BY HIS EXCELLENCY BOLA AHNED TINUBU, GCFR, PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA ON THE 65TH INDEPENDENCE ANNIVERSARY OF NIGERIA, OCTOBER 1, 2025

Fellow Nigerians,

Today marks the 65th anniversary of our great nation’s Independence. As we reflect on the significance of this day and our journey of nationhood since October 1, 1960, when our founding fathers accepted the instruments of self-government from colonial rule, let us remember their sacrifice, devotion, and grand dream of a strong, prosperous, and united Nigeria that will lead Africa and be the beacon of light to the rest of the world.

Our founding heroes and heroines—Herbert Macaulay, Dr Nnamdi Azikiwe, Sir Abubakar Tafawa Balewa, Chief Obafemi Awolowo, Sir Ahmadu Bello, Margaret Ekpo, Anthony Enahoro, Ladoke Akintola, Michael Okpara, Aminu Kano, Funmilayo Ransome-Kuti, and other nationalists—believed it was Nigeria’s manifest destiny to lead the entire black race as the largest black nation on earth.

For decades, the promise of our Independence has been tested by profound social, economic, and political challenges, and we have survived. While we may not have achieved all the lofty dreams of our forebearers, we have not strayed too far from them. In 65 years since our Independence, we have made tremendous progress in economic growth, social cohesion, and physical development. Our economy has experienced significant growth since 1960.

Although, it is much easier for those whose vocation is to focus solely on what ought to be, we must recognise and celebrate our significant progress. Nigerians today have access to better education and healthcare than in 1960. At Independence, Nigeria had 120 secondary schools with a student population of about 130,000. Available data indicate that, as of year 2024, there were more than 23,000 secondary schools in our country. At Independence, we had only the University of Ibadan and Yaba College of Technology as the two tertiary institutions in Nigeria. By the end of last year, there were 274 universities, 183 Polytechnics, and 236 Colleges of Education in Nigeria, comprising Federal, State, and private institutions. We have experienced a significant surge in growth across every sector of our national life since Independence – in healthcare, infrastructure, financial services, manufacturing, telecommunications, information technology, aviation and defence, among others.

Our country has experienced both the good and the bad times in its 65 years of nationhood, as is normal for every nation and its people. We fought a bitter and avoidable civil war, experienced military dictatorships, and lived through major political crises. In all these, we weathered every storm and overcame every challenge with courage, grit, and uncommon determination. While our system and ties that bind us are sometimes stretched by insidious forces opposed to our values and ways of life, we continue to strive to build a more perfect union where every Nigerian can find better accommodation and find purpose and fulfilment.
Fellow Compatriots, this is the third time I will address you on our independence anniversary since I assumed office as your President on May 29, 2023. In the last 28 months of my administration, like our founding fathers and leaders who came before me, I have committed myself irrevocably to the unfinished nation-building business.

Upon assuming office, our administration inherited a near-collapsed economy caused by decades of fiscal policy distortions and misalignment that had impaired real growth. As a new administration, we faced a simple choice: continue business as usual and watch our nation drift, or embark on a courageous, fundamental reform path. We chose the path of reform. We chose the path of tomorrow over the comfort of today. Less than three years later, the seeds of those difficult but necessary decisions are bearing fruit.

In resetting our country for sustainable growth, we ended the corrupt fuel subsidies and multiple foreign exchange rates that created massive incentives for a rentier economy, benefiting only a tiny minority. At the same time, the masses received little or nothing from our Commonwealth. Our administration has redirected the economy towards a more inclusive path, channelling money to fund education, healthcare, national security, agriculture, and critical economic infrastructure, such as roads, power, broadband, and social investment programmes. These initiatives will generally improve Nigerians’ quality of life. As a result of the tough decisions we made, the Federal and State governments, including Local Governments, now have more resources to take care of the people at the lower level of the ladder, to address our development challenges.

Fellow Nigerians, we are racing against time. We must build the roads we need, repair the ones that have become decrepit, and construct the schools our children will attend and the hospitals that will care for our people. We have to plan for the generations that will come after us. We do not have enough electricity to power our industries and homes today, or the resources to repair our deteriorating roads, build seaports, railroads, and international airports comparable to the best in the world, because we failed to make the necessary investments decades ago. Our administration is setting things right.

I am pleased to report that we have finally turned the corner. The worst is over, I say. Yesterday’s pains are giving way to relief. I salute your endurance, support, and understanding. I will continue to work for you and justify the confidence you reposed in me to steer the ship of our nation to a safe harbour.

Under our leadership, our economy is recovering fast, and the reforms we started over two years ago are delivering tangible results. The second quarter 2025 Gross Domestic Product grew by 4.23%—Nigeria’s fastest pace in four years—and outpaced the 3.4 per cent projected by the International Monetary Fund. Inflation declined to 20.12% in August 2025, the lowest level in three years. The administration is working diligently to boost agricultural production and ensure food security, reducing food costs.

In the last two years of our administration, we have achieved 12 remarkable economic milestones as a result of the implementation of our sound fiscal and monetary policies:

We have attained a record-breaking increase in non-oil revenue, achieving the 2025 target by August with over N20 trillion. In September 2025 alone, we raised N3.65 trillion, 411% higher than the amount raised in May 2023.

We have restored Fiscal Health: Our debt service-to-revenue ratio has been significantly reduced from 97% to below 50%. We have paid down the infamous “Ways and Means” advances that threatened our economic stability and triggered inflation. Following the removal of the corrupt petroleum subsidy, we have freed up trillions of Naira for targeted investment in the real economy and social programmes for the most vulnerable, as well as all tiers of government.

We have a stronger foreign Reserve position than three years ago. Our external reserves increased to $42.03 billion this September—the highest since 2019.

Our tax-to-GDP ratio has risen to 13.5 per cent from less than 10 per cent. The ratio is expected to increase further when the new tax law takes effect in January. The tax law is not about increasing the burden on existing taxpayers but about expanding the base to build the Nigeria we deserve and providing tax relief to low-income earners.

We are now a Net Exporter: Nigeria has recorded a trade surplus for five consecutive quarters. We are now selling more to the world than we are buying, a fundamental shift that strengthens our currency and creates jobs at home. Nigeria’s trade surplus increased by 44.3% in Q2 2025 to ₦7.46 trillion ($4.74 billion), the largest in about three years. Goods manufactured in Nigeria and exported jumped by 173%. Non-oil exports, as a component of our export trade, now represent 48 per cent, compared to oil exports, which account for 52 per cent. This signals that we are diversifying our economy and foreign exchange sources outside oil and gas.

Oil production rebounded to 1.68 million barrels per day from barely one million in May 2023. The increase occurred due to improved security, new investments, and better stakeholder management in the Niger Delta. Furthermore, the country has made notable advancements by refining PMS domestically for the first time in four decades. It has also established itself as the continent’s leading exporter of aviation fuel.

The Naira has stabilised from the turbulence and volatility witnessed in 2023 and 2024. The gap between the official rate and the unofficial market has reduced substantially, following FX reforms and fresh capital and remittance inflows. The multiple exchange rates, which fostered corruption and arbitrage, are now part of history. Additionally, our currency rate against the dollar is no longer determined by fluctuations in crude oil prices.

Under the social investment programme to support poor households and vulnerable Nigerians, N330 billion has been disbursed to eight million households, many of whom have received either one or two out of the three tranches of the N25,000 each.

Coal mining recovered dramatically from a 22% decline in Q1 to 57.5% growth in Q2, becoming one of Nigeria’s fastest-growing sectors. The solid mineral sector is now pivotal in our economy, encouraging value-added production of minerals extracted from our soil.

The administration is expanding transport infrastructure across the country, covering rail, roads, airports, and seaports. Rail and water transport grew by over 40% and 27%, respectively. The 284-kilometre Kano-Kastina-Maradi Standard Gauge rail project and the Kaduna-Kano rail line are nearing completion. Work is progressing well on the legacy Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway. The Federal Executive Council recently approved $3 billion to complete the Eastern Rail Project.

The world is taking notice of our efforts. Sovereign credit rating agencies have upgraded their outlook for Nigeria, recognising our improved economic fundamentals. Our stock market is experiencing an unprecedented boom, rising from an all-share index of 55,000 points in May 2003 to 142,000 points as of September 26, 2025.

At its last MPC meeting, the Central Bank slashed interest rates for the first time in five years, expressing confidence in our country’s macroeconomic stability.

SECURITY:
We are working diligently to enhance national security, ensuring our economy experiences improved growth and performance. The officers and men of our armed forces and other security agencies are working tirelessly and making significant sacrifices to keep us safe. They are winning the war against terrorism, banditry and other violent crimes. We see their victories in their blood and sweat to stamp out Boko Haram Terror in North-East, IPOB/ESN terror in South East and banditry and kidnapping. We must continue to celebrate their gallantry and salute their courage on behalf of a grateful nation. Peace has returned to hundreds of our liberated communities in North-West and North-East, and thousands of our people have returned safely to their homes.

YOUTH:
I have a message for our young people. You are the future and the greatest assets of this blessed country. You must continue to dream big, innovate, and conquer more territories in your various fields of science, technology, sports, and the art and creative sector. Our administration, through policies and funding, will continue to give you wings to fly sky-high. We created NELFUND to support students with loans for their educational pursuits. Approximately 510,000 students across 36 states and the FCT have benefited from this initiative, covering 228 higher institutions. As of September 10, the total loan disbursed was N99.5 billion, while the upkeep allowance stood at N44.7 billion.

Credicorp, another initiative of our administration, has granted 153,000 Nigerians N30 billion affordable loans for vehicles, solar energy, home upgrades, digital devices, and more.

YouthCred, which I promised last June, is a reality, with tens of thousands of NYSC members now active beneficiaries of consumer credit for resettlement.

Under our Renewed Hope Agenda, we promised to build a Nigeria where every young person, regardless of background, has an equitable opportunity to access a better future—thus, the Investment in Digital and Creative Enterprises (iDICE) programme. The Bank of Industry is driving the programme, in collaboration with the African Development Bank, the French Development Agency, and the Islamic Development Bank. This initiative is at the cusp of implementation. Over the last two years, we have collaborated with our partners to launch the programme, supporting our young builders and dreamers in the technology and creative sectors.

A MESSAGE OF HOPE
Fellow Nigerians, I have always candidly acknowledged that these reforms have come with some temporary pains. The biting effects of inflation and the rising cost of living remain a significant concern to our government. However, the alternative of allowing our country to descend into economic chaos or bankruptcy was not an option. Our macro-economic progress has proven that our sacrifices have not been in vain. Together, we are laying a new foundation cast in concrete, not on quicksand.

The accurate measure of our success will not be limited to economic statistics alone, but rather in the food on our families’ tables, the quality of education our children receive, the electricity in our homes, and the security in our communities. Let me assure you of our administration’s determination to ensure that the resources we have saved and the stability we have built are channelled into these critical areas. Today, the governors at the state level, and the local government autonomy are yielding more developments.

Therefore, on this 65th Anniversary of Our Independence, my message is hope and a call to action. The federal government will continue to do its part to fix the plumbing in our economy. Now, we must all turn on the taps of productivity, innovation, and enterprise, just like the Ministry of Interior has done with our travel passports, by quickening the processing. In this regard, I urge the sub-national entities to join us in nation-building. Let us be a nation of producers, not just consumers. Let us farm our land and build factories to process our produce. Let us patronise ‘Made-in-Nigeria’ goods. I say Nigeria first. Let us pay our taxes.

Finally, let all hands be on deck. Let us believe, once more, in the boundless potential of our great nation.

With Almighty God on our side, I can assure you that the dawn of a new, prosperous, self-reliant Nigeria is here.

Happy 65th Independence Anniversary, and may God continue to bless the Federal Republic of Nigeria.

Amen.

Bola Ahmed Tinubu, GCFR
President and Commander-In-Chief of the Armed Forces of the Federal Republic of Nigeria,
Presidential Villa,
Abuja.

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