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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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JUST IN: Court to hear Akpabio’s contempt claims against Natasha May 13

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The Federal High Court in Abuja on Monday adjourned till Tuesday, May 13, for the definite hearing of the contempt claims made against the suspended Senator representing Kogi Central Senatorial District, Natasha Akpoti-Uduaghan, by Senate President Godswill Akpabio.

Justice Binta Nyako fixed the date following a submission by the second and third defendants, who informed the court that they had filed an application drawing attention to the plaintiff’s alleged contempt.

The legal dispute between Akpabio and Akpoti-Uduaghan originated from a disagreement over seating arrangements during plenary on February 20.

Subsequently, Akpoti-Uduaghan, during a television programme where she appeared as a guest, made allegations of sexual harassment against Akpabio.

Following the fallout, Akpoti-Uduaghan approached the Federal High Court seeking an order to restrain the Senate Committee on Ethics, Privileges, and Public Petitions from investigating her.

In an ex parte motion marked FHC/ABJ/CS/384/2025, she sued the Clerk of the National Assembly, the Senate President, and the Chairman of the Senate Committee on Ethics, Privileges, and Public Petitions, Senator Nedamwen Imasuen.

On March 4, the court issued an order restraining the Senate from commencing disciplinary proceedings against Akpoti-Uduaghan following her ex parte application.

However, on March 6, the Senate proceeded to suspend her, citing a report by the committee alleging gross misconduct, despite the matter being sub judice.

On Friday, April 4, 2025, Justice Nyako ordered Akpoti-Uduaghan, Akpabio, the Clerk of the National Assembly, the Senate, and Imasuen to refrain from granting media interviews or making social media posts related to the case while it remained pending before the court.

This order followed claims by Akpabio’s counsel that Akpoti-Uduaghan had been granting press interviews despite the court’s directive.

At the resumed sitting on Monday, Akpoti-Uduaghan’s legal team, led by Jibrin Okutekpa, informed the court that the matter was fixed for hearing and that all required documents had been filed.

Charles Yoila appeared for the first defendant; Paul Daudu represented the second defendant; Ekoh Ejembi (SAN) for the third defendant; and Valentine Offia for the fourth defendant.

All defence lawyers confirmed compliance with the court’s previous orders and readiness for the hearing.

However, Daudu informed the court that despite the order against social media posts, the plaintiff had published a satirical post on her Facebook page.

“This matter is coming up for definite hearing. The second defendant has filed its schedule of hearing. Ordinarily, we are ready to proceed, but a further affidavit was served on me just on Friday, which I am entitled to respond to.

“This court ordered that there should be no social media posts, but there was one. The plaintiff herself posted a satirical apology on her Facebook page,” Daudu said.

He argued that the post mocked the court and violated its order, urging the court to hold her in contempt.

Akpabio’s counsel, Ejembi, supported Daudu’s submission, stating that the plaintiff’s Facebook post undermined the court’s authority.

“We are alleging that the Facebook post made by the plaintiff is a mockery of the court’s proceedings. We tender a Punch newspaper report showing she made the post despite the court’s order,” Ejembi said.

In response, the plaintiff’s counsel maintained that the Facebook post was related to the sexual harassment allegation and not the issue before the court.

Okutekpa urged the court to disregard the defendants’ submissions and proceed with hearing the substantive matter.

“Our counter-affidavit concerns only the matter before the court. The satirical post has no connection to it,” he argued.

He also urged the court to fast-track the hearing, noting that Akpoti-Uduaghan had spent 68 cumulative days out of the National Assembly.

Justice Nyako, however, insisted that the contempt issue must be addressed first.

“I cannot proceed with this matter until I conclude on the issue of contempt. If there is contempt, I have to hear and determine it first,” she said.

In turn, Akpoti-Uduaghan’s counsel raised a contempt allegation against all the defendants.

“My Lord, you have paused this trial over a contempt allegation. We also have an issue of contempt against all the defendants,” he said.Justice Nyako cautioned the lawyers, warning that continued disobedience of court orders by their clients could lead to consequences.

“I have the power to summon all your clients to appear in court. If counsel or litigants disobey the court, then the court has no business hearing them—that is my position,” she said.

Addressing Akpoti-Uduaghan’s legal team, she added, “If you have an application for contempt, bring it forward so the court can hear it.

”She added, “You cannot allow your client to disrespect this court. If they are found in contempt, they will face punishment. If not, the court will proceed.”

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JUST IN: Electoral reform coming ahead of 2027 election – Yakubu

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The Chairman of the Independent National Electoral Commission (INEC), Prof. Mahmood Yakubu, has assured Nigerians that all necessary amendments on the Electoral Act will be completed before the 2027 polls.

Yakubu also debunked insinuation in some quarters that he has been sacked, saying he still remains the country’s chief electoral officer.

The INEC Chairman spoke while fielding questions from newsmen on Monday shortly after the inauguration of two INEC Commissioners by President Bola Tinubu at the Council Chamber, State House, Abuja.

According to him, the commission alongside relevant stakeholders have reviewed the 2023 general election and came up with 142 recommendations, stressing that out of the number, eight required electoral amendment.

The INEC boss said the commission has been interfacing with the National Assembly and that two weeks ago, it had a retreat in Lagos with the joint committee of the Senate and House of Representatives on electoral reform.

“Thereafter, the National Assembly is going to organize a public hearing, and it’s after the public hearing that now a new bill will, at the end of the day, be submitted to the president for assent,” he said.

Yakubu further stated: “So, we’re working with the National Assembly on electoral reform, but at this point, I’m not going to give you any more details.

You will hear from the National Assembly whose responsibility it is, but we reviewed the 2023 general election on our own.

“We engaged with the stakeholders. We came up with 142 recommendations out of this 142 recommendations, eight require constitutional or Electoral Act amendment, and we discussed this with members of the National Assembly.

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Crime

JUST IN: Tompolo has questions to answer – EFCC breaks silence on viral video

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The Economic and Financial Crimes Commission, EFCC, has said Chief Government Ekpemupolo, widely known as Tompolo, has questions to answer concerning a viral video clip which showed him allegedly engaging in naira abuse.

Nigerians on Sunday dared the Commission to arrest Tompolo like it did to other offenders.

The outrage was ignited by a viral video posted on X by one Harrison A, who tweets as #harreceipts with the caption, ‘EFCC, see Tompolo and the Naira o’.

The video clip captured parts of Tompolo’s 54th birthday celebration in April.It showed the Niger Delta chieftain dancing while a man lavishly sprayed N1,000 notes before him.

Responding to the demands by netizens, EFCC in a post on its official X handle on Monday said: “Nobody is above the law. Tompolo will have questions to answer!”

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