Mortgage and Nigeria’s Housing Deficit

Analysts have estimated the housing deficit in Nigeria at about 16 million.

In one report they  also stated that over 50 per cent of 170 million people living in the country are either homeless or without adequate housing.

Nigeria’s real estate sector accounts for 7.6 per cent of the country’s recently rebased Gross Domestic Product (GDP).

In an attempt to reduce the deficit, the federal government had launched the Nigerian Mortgage Refinance Corporation (NMRC) in January this year.

The NMRC’s core aim is to provide affordable mortgages for Nigerians but with the high single digit interest rates, the masses are still sceptical.

Addressing the issue of affordability at the launch of the refinance company, the Coordination Minister of the Economy/ Minister of Finance, Dr Ngozi Okonjo-Iweala had assured Nigerians that there would be mass housing schemes for the lower end of the market.

With the elections scheduled for next year, the 14 states where the NMRC would pilot have promised to make land laws less stringent, as well as ensure that housing schemes accommodate the low income range, and provide plans that will see them truly benefit from the scheme.