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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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Democracy Under Siege: Tinubu’s Chokehold Suffocating the Republic – Atiku Abubakar

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Former Vice President of Nigeria and chieftain of the African Democratic Congress (ADC), Atiku Abubakar, has expressed deep concern over the alarmingly low voter turnout in Saturday’s Federal Capital Territory (FCT) Area Council elections, describing the figures as a clear indictment of the state of Nigeria’s democracy under the present administration.

Official results showed an average turnout of below 20 per cent across the six area councils, with the Abuja Municipal Area Council recording a particularly dismal 7.8 per cent.

Atiku described this as “a damning verdict” on the health of the nation’s democratic process, especially in the symbolic capital city that represents the heartbeat of the federation.

He attributed the widespread disengagement not to voter apathy, but to a deliberate and sustained assault on democratic norms by the Bola Tinubu-led All Progressives Congress (APC) government.

According to the former Vice President, the low participation is the predictable result of a political atmosphere marked by intolerance, intimidation, harassment of dissenters, coercion of political defectors, and the systematic stifling of opposition voices.

“When citizens lose faith that their votes matter, democracy begins to die,” Atiku declared. “What we are witnessing is not mere voter apathy. It is a direct consequence of an administration that governs with a chokehold on pluralism. Democracy in Nigeria is being suffocated—slowly, steadily, and dangerously.”

He cautioned that the ongoing erosion of participatory governance, if allowed to continue unchecked, risks inflicting irreversible damage on the democratic institutions and freedoms built over decades through sacrifice and struggle.

“A democracy without vibrant opposition, without free political competition, and without public confidence is democracy in name only,” he warned. “If this chokehold is not released, history will record this era as the period when our hard-won freedoms were traded for fear and conformity.”

Atiku called on all opposition parties, civil society organisations, and democratic forces nationwide to urgently set aside differences and form a united front to defend the Republic.

“This is no longer about party lines; it is about preserving the Republic,” he emphasised. “The time to stand together to rescue and rebuild Nigeria is now.”

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Nigeria Secures Major Victory in $6.2 Million Arbitration Against European Tech Firm

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In a significant win for the administration of President Bola Ahmed Tinubu, Nigeria has prevailed in an international arbitration dispute with European Dynamics UK Ltd, a European technology contractor, saving the country from a potential liability of over $6.2 million (approximately ₦9.3 billion).

The Bureau of Public Procurement (BPP) successfully defended against claims related to a stalled national electronic Government Procurement (e-GP) system project, funded in part by the World Bank. The project involved the design, development, customization, supply, installation, and maintenance of the e-Procurement platform aimed at enhancing transparency, accountability, and efficiency in federal public procurement.

The Sole Arbitrator, Mrs. ‘Funmi Roberts, issued a final and non-appealable ruling dismissing all claims by European Dynamics UK Ltd in their entirety. The contractor had sought approximately $2.4 million for alleged milestone payments, $3 million in general damages, and an additional $800,000 in settlement claims.

The dispute centered on the User Acceptance Test (UAT), where BPP identified significant functional deficiencies, omissions, and errors in the system. Nigeria’s position—that delivery in software customization projects is only complete upon satisfactory UAT confirming compliance with technical, statutory, and operational requirements—was upheld.

The tribunal ruled that the vendor bore responsibility to remedy deficiencies at no extra cost and found no evidence supporting the contractor’s claims of approved mergers of project phases or contractual consent for such changes.Nigeria’s legal team, led by Johnson & Wilner LLP with Founding Partner Basil Udotai Esq. at the forefront, was praised for its expertise in technology contracting.

BPP Director-General Dr. Adebowale Adedokun, who inherited the stalled project and ongoing arbitration upon taking office, described the outcome as a landmark signal in public sector technology dealings.

“This vendor has taken various African countries to court and won every single case. Nigeria is the first to defeat them,” he said during a presentation of the award to Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN). He emphasized that Nigeria “can no longer be taken for granted” and thanked the AGF for supporting the decision to proceed with arbitration rather than settle.

AGF Fagbemi hailed the victory as evidence that “it is no longer business as usual.” He commended Dr. Adedokun’s courage, the legal team’s brilliance, and President Tinubu’s backing for institutional strengthening. “This win sends a clear message to the international community: Nigeria has resonated…

By standing up to European Dynamics, we have instilled courage in other African nations to protect their own resources,” he stated.

The ruling highlights the critical role of rigorous testing, clear milestones, and performance-based standards in government tech contracts, with lessons to be applied to ongoing e-procurement reforms to minimize future disputes.Kamarudeen Ogundele Special Assistant to the President (Communication and Publicity) Office of the Attorney General of the Federation and Minister of Justice

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UNICEF Lauds Nigeria’s Remarkable Progress in Birth Registration (Photos)

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ighlights 14 Million Children Registered in Two Years.

The United Nations Children’s Fund (UNICEF) has commended Nigeria for achieving a significant milestone in child rights, with 14 million children’s births officially registered over the past two years.

This surge represents impressive advancement in ensuring every child is counted and recognized through legal identity.

The announcement came during a courtesy visit by UNICEF Country Representative to Nigeria, Ms. Wafaa Saeed Abdelatef, to Senator Oluremi Tinubu, the First Lady of Nigeria, at the State House in Abuja.

Ms. Abdelatef praised the First Lady’s exemplary leadership in championing children’s issues and family welfare nationwide. She described the progress in birth registration as unprecedented in her experience across various countries.

“Birth registration is the first right of every child—to be counted and recognized,” she stated. “It is really impressive. I have served in many places, but I have not seen such progress in two years as we have witnessed here in Nigeria.

“She highlighted key enablers of this success, including the digitalization of the registration system at health facilities and community levels, as well as ongoing legislative efforts with a relevant bill before the National Assembly.

“Things don’t just happen like that; we scale with leadership,” she added, expressing gratitude for the First Lady’s role in driving this initiative and allowing UNICEF to celebrate this “fantastic leadership.

“The UNICEF representative also acknowledged the First Lady’s broader contributions, referencing her involvement in initiatives such as the national library and food bank launches, as well as commendations from African women leaders at the African Union for her continental impact.

She linked these efforts to Nigeria’s Renewed Hope Agenda, which she said is instilling hope for children and citizens alike.In response, Senator Oluremi Tinubu welcomed UNICEF’s recognition and reaffirmed her commitment to ensuring universal birth registration. “Every child counts,” she emphasized, noting that registration immediately after birth grants children nationality, legal identity, and access to essential services like health and education.

The First Lady described the news as a source of joy and a foundation for national development. “This is how nations develop,” she said. While celebrating the gains, she stressed the need for sustained efforts: “We are not there yet. We have to keep at it and make sure every child is counted.

“She pointed out that birth registration is just the starting point, extending to the issuance of birth certificates. Highlighting Nigeria’s lack of a recent census, she noted that starting with children would provide critical data on the child population to guide government planning and resource allocation.

Senator Tinubu also addressed persistent challenges, expressing concern over persistently high rates of tuberculosis, HIV/AIDS, and maternal and child mortality in Nigeria’s large population.

“These numbers are still high, and it is worrisome,” she said, while assuring that the administration is actively working to position the country for a better future.

She expressed appreciation for UNICEF’s longstanding support and reliable data, pledging continued collaboration in any area of mutual interest. “In any area you want us to collaborate, we are here,” she affirmed. “We want to thank UNICEF for the interest and the work you have done.

“This development underscores Nigeria’s ongoing push toward universal civil registration, aligning with global goals to provide legal identity for all children and support broader child rights and development objectives.

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