Access Bank, one of Nigeria’s largest financial institutions, reported N289.3 billion in mortgage loans for the first quarter of 2025, making up just 2.3% of its total loan portfolio, according to its latest financial statement.
The bank’s total loan portfolio stood at about N12.2 trillion as of March 2025. While mortgage lending is a crucial part of the housing sector, it remains a small fraction of overall banking activity. Personal mortgage loans led the category with N218 billion, while the total mortgage loan book was N318 billion at the end of 2024. The bank also reported an expected credit loss of N9.1 billion from these loans last year.
Other major banks have also seen shifts in their mortgage portfolios. Stanbic IBTC’s mortgage loans under personal and private banking grew from N941 million in 2023 to N1.073 billion in 2024. Its retail mortgage loans jumped from N15.2 billion to N26.8 billion over the same period. First Holdco’s retail mortgage loans more than doubled, reaching N264.2 billion in 2024.
Despite these increases, experts say Nigeria’s mortgage sector remains underdeveloped. High interest rates-often between 15% and 25%-and short loan tenures make monthly repayments unaffordable for many. “The mortgage industry has grappled with outdated and disconnected systems, often requiring mortgage professionals to juggle multiple tools to manage a single loan,” said Noah Ibrahim, Chief Strategy Officer and co-founder of Green Mortgage.
Primary Mortgage Banks (PMBs) have also faced significant challenges. Their total assets dropped sharply from N454.7 billion in the third quarter of 2023 to just N1.4 billion in the same period of 2024. Liabilities rose to match assets, and PMB loans increased from N192.3 million to N269.6 million year-on-year.
The Federal Mortgage Bank of Nigeria (FMBN) is working to address the housing gap. In August, the bank announced a target to deliver 5,000 new homes annually and disburse 20,000 mortgage loans each year, mainly through the Renewed Hope Cities and Estates Programme. However, the process for securing a mortgage remains slow, with 70% of PMBs reporting that it takes more than 12 months to process a loan from the National Housing Fund.
Experts argue that simplifying the mortgage process and leveraging technology could help more Nigerians become homeowners. Mrs. Imelda Olaoye, a business strategist, said, “Technology has evolved, and it is crucial to leverage the most needed tools to enhance mortgage processes.”
Despite government efforts, Nigeria’s housing deficit persists. For many, the high cost and cumbersome process of obtaining a mortgage remain significant barriers.
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