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Understanding Mortgage Options in Nigeria’s Real Estate Market by Dennis Isong

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For Nigerians considering a mortgage, thorough research and preparation are essential.

As more Nigerians aspire to become homeowners, understanding the available mortgage options becomes essential.

This article discusses mortgage financing in Nigeria, exploring the various options available to prospective homeowners and investors..

The Nigerian MortgageNigeria’s mortgage industry, while still developing, has made considerable strides in recent years.

The Federal Mortgage Bank of Nigeria (FMBN) and the Nigeria Mortgage Refinance Company (NMRC) play pivotal roles in shaping the mortgage sector.

These institutions work alongside commercial banks and primary mortgage banks to provide various mortgage products to Nigerians.

The mortgage-to-GDP ratio in Nigeria remains relatively low compared to more developed economies, indicating significant room for growth.

However, challenges such as high interest rates, limited long-term funding, and stringent lending criteria have historically hindered widespread mortgage adoption.

Despite these obstacles, recent government initiatives and private sector innovations are gradually making mortgages more accessible to a broader segment of the population.

Types of Mortgage Options

Nigerian homebuyers and investors can choose from several mortgage options, each with its unique features and requirements.

The most common types include:Federal Mortgage Bank of Nigeria (FMBN) Loans:

These are government-backed mortgages designed to provide affordable housing finance to Nigerian workers.

The National Housing Fund (NHF) scheme, administered by the FMBN, allows contributors to access loans at favorable interest rates for home purchase or construction.

Commercial Bank Mortgages: Many commercial banks in Nigeria offer mortgage products to their customers.

These loans typically have higher interest rates compared to government-backed options but may offer more flexibility in terms of loan amounts and repayment periods.

Primary Mortgage Bank Loans: Specialized mortgage institutions provide various home financing options, often with more competitive rates than commercial banks.

These institutions focus exclusively on mortgage lending and may offer more tailored products to meet specific needs.

Rent-to-Own Schemes: Some developers and financial institutions offer rent-to-own arrangements, allowing tenants to gradually build equity in a property while paying rent.

This option can be particularly attractive for those who may not qualify for traditional mortgages.

Cooperative Society Loans: Many Nigerians participate in cooperative societies that pool resources to provide housing loans to members.

These loans often come with lower interest rates and more flexible terms compared to traditional banking options.Eligibility and Requirements

Securing a mortgage in Nigeria typically requires meeting certain eligibility criteria and fulfilling specific requirements. While these may vary depending on the lender and the type of mortgage, common factors include:

Income and Employment:

Lenders generally require proof of stable income and employment. The debt-to-income ratio is a crucial factor in determining loan eligibility and amount.Credit History:

Although Nigeria lacks a comprehensive credit scoring system, lenders may review an applicant’s credit history and repayment record on previous loans.

Down Payment: Most mortgage options in Nigeria require a significant down payment, typically ranging from 20% to 30% of the property’s value.

Some government-backed schemes may offer lower down payment requirements.Property Valuation: The property being purchased or used as collateral must undergo a professional valuation to determine its market value and ensure it meets the lender’s criteria.

Documentation: Applicants must provide various documents, including identification, proof of income, tax clearance certificates, and property-related documents.

Age Limit: Many lenders impose age restrictions, often requiring the mortgage to be fully repaid before the borrower reaches retirement age.

Challenges and Opportunities in Nigerian Mortgage Financing.

While the Nigerian mortgage market continues to evolve, several challenges persist. High interest rates, often in double digits, make mortgages unaffordable for many Nigerians.

The lack of long-term funding sources limits the ability of lenders to offer extended repayment periods, which could make monthly payments more manageable.Land tenure issues and the complexities of property registration in some parts of the country also pose significant hurdles.

The time and cost associated with perfecting property titles can add to the overall expense of obtaining a mortgage.

However, these challenges also present opportunities for innovation in the mortgage sector. Fintech companies are entering the market with digital solutions that streamline the mortgage application and approval process.

Some lenders are exploring alternative credit scoring methods to assess creditworthiness, potentially opening up mortgage access to a broader population.

The government’s ongoing efforts to address housing deficits through initiatives like the Family Homes Fund and the National Housing Programme are creating new opportunities for affordable mortgage financing.

Additionally, the gradual development of the secondary mortgage market through the Nigeria Mortgage Refinance Company (NMRC) is expected to increase liquidity in the sector and potentially lead to more competitive mortgage rates.

Navigating the Mortgage Process.

For Nigerians considering a mortgage, thorough research and preparation are essential.

Prospective borrowers should:

● Compare offerings from multiple lenders to find the best rates and terms.

● Understand all associated costs, including processing fees, insurance, and potential penalties for early repayment.

● Seek professional advice from financial advisors or real estate experts to make informed decisions.

● Consider the long-term implications of the mortgage, including how it aligns with future financial goals and career plans.

● Stay informed about government policies and initiatives that may affect the mortgage market or provide new opportunities for home financing.

As Nigeria’s real estate market continues to grow and evolve, so too will the mortgage options available to its citizens.

By understanding the current landscape and staying informed about new developments, prospective homeowners and investors can make the most of the opportunities presented by mortgage financing in Nigeria’s dynamic real estate sector.

For personalized assistance with your property needs, contact Dennis Isong, a top Lagos realtor specializing in helping Nigerians in the diaspora own property stress-free.Contact: +2348164741041

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BREAKING: Tinubu swears in Amupitan as new INEC Chair

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President Bola Tinubu has officially sworn in Professor Joash Amupitan as the new Chairman of the Independent National Electoral Commission (INEC). The ceremony followed the Senate’s confirmation of Amupitan’s appointment last week after a rigorous screening session on October 16.

At the swearing-in, President Tinubu tasked Amupitan with safeguarding the integrity of Nigeria’s elections and strengthening INEC’s institutional capacity.

“As the chairman of INEC, your nomination and confirmation reflect the confidence reposed in you by both the executive and legislative arms of government. This marks the start of a challenging yet rewarding journey, and I trust you will approach your duties with integrity, dedication, and patriotism,” Tinubu said.

Highlighting Nigeria’s democratic progress over 25 years, the President emphasized the need for continuous innovation and reform to maintain free, fair, and credible elections. He urged Amupitan to ensure transparency and public trust throughout the entire electoral process—from voter registration and campaigning to voting and counting.

Amupitan, a professor of law and Senior Advocate of Nigeria (SAN), arrived at the State House on Thursday dressed in traditional white agbada and gold cap ahead of the formal ceremony. He was accompanied by presidential aides.

During his Senate screening, the 58-year-old nominee pledged to restore credibility to Nigeria’s electoral process by prioritizing reforms, including strengthening the Electoral Act to resolve inconsistencies in election timelines and enhance transparency.

“We must conduct elections where even the loser congratulates the winner fairly,” Amupitan told senators, emphasizing the need to rebuild voter confidence.

He also clarified his neutrality by denying any involvement in President Tinubu’s legal team during the 2023 Presidential Election Petitions Court, stating, “I never appeared before the Presidential Election Tribunal or the Supreme Court for any party.”

Amupitan succeeds Professor Mahmood Yakubu as the sixth substantive INEC chairman since the commission’s establishment. He is expected to immediately begin the transition process at INEC headquarters in Abuja following his swearing-in.

Profile

Born on April 25, 1967, the 58-year-old Amupitan hails from Ayetoro Gbede in Ijumu Local Government Area of Kogi State. He is a Professor of Law at the University of Jos, Plateau State. He is also an alumnus of the university.

He specialises in Company Law, Law of Evidence, Corporate Governance and Privatisation Law. He became a Senior Advocate of Nigeria in September 2014.

After completing primary and secondary education, he attended Kwara State Polytechnic, Ilorin, from 1982 to 1984, and the University of Jos from 1984 to 1987. He was called to the bar in 1988.

Amupitan earned an LLM at UNIJOS in 1993 and a PhD in 2007, amid an academic career that began in 1989, following his National Youth Service at the Bauchi State Publishing Corporation in Bauchi from 1988 to 1989.

He currently serves as the Deputy Vice-Chancellor (Administration) at the University of Jos, a position he holds in conjunction with being the Pro-Chancellor and Chairman of the Governing Council of Joseph Ayo Babalola University in Osun State.

Among the academic positions he has held at UNIJOS are: Chairman of the Committee of Deans and Directors (2012-2014); Dean of the Faculty of Law (2008-2014); and Head of Public Law (2006-2008).

Outside of academics, Amupitan serves as a board member of Integrated Dairies Limited in Vom, a member of the Nigerian Institute of Advanced Legal Studies Governing Council, and a member of the Council of Legal Education (2008-2014), among other roles. He was a board member of Riss Oil Limited, Abuja(1996-2004).

Amupitan is the author of many books on law, such as Corporate Governance: Models and Principles(2008); Documentary Evidence in Nigeria (2008); Evidence Law: Theory and Practice in Nigeria(2013), Principles of Company Law(2013)  and an Introduction to the Law of Trust in Nigeria (2014).

He is married and has four children.

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Dangote denies owning truck that killed eight in Ondo accident

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Dangote Group has denied owning the truck that crushed a pregnant woman, a child, and six others to death in an accident in Akungba-Akoko, Akoko South-West Local Government Area of Ondo State.

The company issued the clarification in a statement on its X account on Wednesday.

The statement followed reports that a cement-laden truck suffered brake failure and rammed into traders and other road users.

Reacting, Dangote Group said the truck involved in the tragic incident does not belong to the group or any of its subsidiaries.

It added that vehicle registration records confirm the truck is owned and operated by an independent logistics company with no affiliation to Dangote Group.

“Dangote Group has refuted reports circulating on social media and in some online platforms linking it to a truck involved in a road accident in Akungba-Akoko, Akoko South-West Local Government Area of Ondo State.

“The company wishes to make it categorically clear that the truck involved in the unfortunate incident does not belong to Dangote Group or any of its subsidiaries.

“Verified vehicle registration details confirm that the truck with Plate No. JJJ 365 XB is owned and operated by an independent logistics company with no affiliation to Dangote Group,” the statement reads.

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VIDEO: Sowore Arrested at Federal High Court Premises, Abuja, After Meeting Nnamdi Kanu.

“The commissioner of police said we should bring you to the office,” the policeman said.

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Police operatives have arrested former presidential candidate and human rights activist, Omoyele Sowore, in Abuja, the nation’s capital.

Sowore was forcibly taken away by armed police officers from the Federal High Court premises in Abuja on Thursday, October 23, 2025, shortly after attending the court session of detained IPOB leader Nnamdi Kanu.

Sowore, who has been leading campaigns for Kanu’s release, was confronted by security operatives who insisted he accompany them to the Federal Capital Territory (FCT) Police Command.

Eyewitnesses disclosed that the officers surrounded him moments after he exited the courtroom, refusing to disclose specific details about his alleged offence.

When questioned by onlookers, one of the policemen stated that they were acting on the directive of the FCT Commissioner of Police.

“The commissioner of police said we should bring you to the office,” the policeman said.

As of the time of filing this report, the reason for Sowore’s arrest and his current whereabouts remain unclear.

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Credit: Punch

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