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HOW MORTGAGES WORK IN NIGERIA by Dennis Isong
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.
- 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. - 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. - 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
- 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. - 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. - 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. - 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. - 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. - 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. - 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. - 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. - 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.
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Niger Speaker Lauds Army, DSS, and Security Agencies for Successfully Dislodging Bandits in the State
Speaker of the Niger State House of Assembly, Rt. Hon. Abdulmalik Mohammed Sarkin-Daji, has commended the Nigerian Army, the Department of State Services (DSS), and other security agencies for what he described as remarkable successes recorded against bandits in Mariga LGA and parts of the Niger North senatorial district of the state.
The Speaker described the operation as a major breakthrough in the fight against insecurity in the state, noting that the bravery, professionalism, and commitment demonstrated by the security personnel resulted in the death of several bandits, while others were successfully arrested by the security agencies.
The Speaker’s commendation was contained in a statement issued on Sunday by the Assembly’s acting head, Directorate of Media and Public Relations, Mairo Adamu Mani.
The Speaker “stated that this decisive action has greatly weakened the activities of criminal elements in the affected areas and restored confidence among residents who had lived in fear for a long time,” noted the statement.
“Rt. Hon. Abdulmalik Mohammed Sarkin-Daji further praised the tireless efforts of the security agencies, especially special forces and DSS operatives, for their continuous sacrifices in protecting lives and property across Niger State and Nigeria at large.
The statement quoted the Speaker as commending the joint clearance operations by the Army and the DSS, which he said was based on intelligence, and resulted in the rescue of over 70 kidnapped persons in the state.
“He acknowledged the risks involved in such operations and expressed deep appreciation to the officers and men who put their lives on the line to ensure peace, stability, and the safety of citizens, especially in vulnerable communities.
“The Speaker assured the security agencies of the unwavering support and cooperation of the Niger State Government, emphasizing that the state will continue to provide all necessary assistance to strengthen security operations,” further stated the Assembly spokesman.
Niger state government, remarked the statement, “remains fully committed to working closely with all security stakeholders to ensure that the lingering challenges of insecurity are completely addressed and brought to an end.
“The Speaker “also appealed to all Nigerlites to remain calm, vigilant, and law-abiding, assuring them that the government considers the security of lives and property as its topmost priority.
“The Speaker encouraged residents to continue to support security agencies by providing credible and timely information that will aid ongoing and future operations aimed at sustaining peace and stability across the state,” the statement declared.
News
President Tinubu Celebrates Fela Kuti’s Historic Posthumous Grammy.
President Bola Ahmed Tinubu has hailed the posthumous conferment of the Grammy Lifetime Achievement Award on Afrobeat pioneer Fela Anikulapo-Kuti as a landmark recognition of African musical excellence and cultural influence.
In a personally signed statement issued today, the President described the honour bestowed by the Recording Academy during the Special Merit Awards Ceremony in Los Angeles on January 31 as a historic first for an African artist.
“The world of music has honoured a giant: Fela Anikulapo-Kuti,” President Tinubu declared. “Fela was more than a musician. He was a fearless voice of the people, a philosopher of freedom, and a revolutionary force whose music confronted injustice and reshaped the global sound.
“The award, presented alongside other legends including Whitney Houston, Cher, Chaka Khan, Carlos Santana, and Paul Simon, marks the first time an African musician has received this prestigious Lifetime Achievement honour.
Fela’s family, including children Yeni, Kunle, Shalewa, and Femi Kuti, accepted the award on his behalf.President Tinubu emphasized Fela’s enduring legacy, noting that his courage, creativity, and conviction not only defined a generation but continue to inspire artists, activists, and audiences worldwide.
Invoking Yoruba cultural reverence, he added: “In Yoruba mythology, he has transcended to a higher plane as an Orisa. He is now eternal.
“The President highlighted Fela’s creation of Afrobeat a powerful fusion of African rhythms, jazz, funk, and highlife infused with sharp social and political commentary and its profound impact on contemporary music.
“He defined Afrobeat, and you can hear and see his influence in generations of Nigerian musicians, in the global rise of Afrobeats, and far beyond,” Tinubu stated.
He described the Grammy recognition as “an affirmation of his enduring global influence and the foundational role he has played in the evolution and impact of Africa on modern music.”
This latest honour builds on prior accolades, including the 2025 induction of Fela’s seminal 1976 album Zombie into the Grammy Hall of Fame.
Nearly three decades after his death in 1997, Fela’s music and activism remain a symbol of resistance and cultural pride. President Tinubu’s tribute underscores national pride in the icon’s global validation.
News
Tinubu returns to Abuja from Ankara State Visit
President Bola Ahmed Tinubu has returned to Abuja after concluding a successful state visit to Türkiye, where he held high-level talks with President Recep Tayyip Erdoğan and signed multiple bilateral agreements.
The President arrived in Abuja on Saturday evening, January 31, 2026, around 8:30–8:55 p.m. local time, following his departure from Türkiye.
Tinubu departed Abuja on Monday, January 26, 2026, for the state visit to Ankara, Türkiye’s capital.
The trip focused on strengthening Nigeria-Türkiye relations in areas including trade, defense, security, energy, education, media, and technical cooperation.
Key highlights included the signing of nine Memoranda of Understanding (MOUs), aimed at boosting economic ties, defense collaboration (including potential training for Nigerian Special Forces), and a targeted increase in bilateral trade volume. Both leaders described the engagements as ushering in a “new era” of strategic partnership.
The visit drew public attention, including an incident during the official welcome ceremony in Ankara where President Tinubu briefly stumbled but continued without issue, with aides confirming he was in good health.
Upon his return, focus now shifts to implementing the signed agreements, including the activation of joint committees on trade and other sectors.
The Presidency has emphasized the visit’s role in advancing Nigeria’s diplomatic and economic interests on the global stage.
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