Access Holding Plc has reported that its total mortgage loans are estimated at approximately N289.3 billion in the first quarter of 2025.
This information is contained in the company’s first-quarter interim report published on the Nigerian Exchange Group (NGX).
A mortgage loan is a type of borrowing used to purchase real estate, where the property itself serves as collateral.
The borrower agrees to repay the loan in installments over an agreed period, with interest.
Mortgage loans constitute a small portion of commercial banks’ overall loan portfolios due to several factors.
What the Data Indicates
According to the financial statements of the bank, it has a total loan portfolio of approximately N12.2 trillion as of March 2025.
This suggests that mortgage loans represent just 2.3% of the bank’s total loan portfolio during the period under consideration.
The loans are categorized into personal and corporate loans, with personal loans leading with N218 billion. The total mortgage loan was N318 billion as of December 2024.
However, the bank estimated an expected credit loss of about N9.1 billion from the loans as of 2024.
Other banks
In 2024, Stanbic IBTC’s mortgage loan under the Personal and Private Banking (PPB) grew from N941 million in 2023 to N1.073 billion at the end of 2024.
Similarly, the bank’s retail mortgage rose from N15,184 billion in 2023 to N26,847 billion in 2024.
First Holdco retail mortgage loan rose significantly to N264.212 billion in 2024, up from N133.091 billion in 2023.
Mortgage Loans in Nigeria
In the third quarter of 2024, PMBs total assets stood at N1.412 billion, down from N454.669 billion recorded in the same quarter of 2023. This marks a significant decline of 99.6%
Looking at the three months in the third quarter of 2024, September recorded the biggest total asset of N536.971 million, up from N484.774 million in August, with July reporting the lowest at N390.443 million.
However, there are also liabilities. Primary Mortgage Banks have a total liability of N1.412 billion as at Q3 2024, up from N1.176 billion recorded in the same quarter of 2023.
PMB loan rose to N269.595 million in the 3rd quarter of 2024, up from N192.274 million in the same quarter of the previous year.
The Central Bank of Nigeria’s (CBN) Assessment of the Performance of the National Housing Fund in Nigeria report reveals a fair gender balance in the usage of the scheme, with 57% of respondents who accessed the National Housing Fund (NHF) being males and 43% females.
The approval rate reported by Primary Mortgage Banks (PMBs) was also corroborated by beneficiaries, who reported that 66% of them obtained loan approvals, while 27% of total applications were being processed. The remaining applications (7%) were rejected.
Additionally, the processing period for NHF loan applications took longer, with 70% of PMBs indicating that it took more than 12 months to process a mortgage facility from the NHF.
FMBN Targets 5,000 New Homes Annually
In August, the Federal Mortgage Bank of Nigeria (FMBN) announced its target to deliver 5,000 new homes annually, largely through the Renewed Hope Cities and Estates Programme.
The Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa also stated that FMBN would disburse 20,000 mortgage loans each year, necessitating quicker turnaround times and improved customer service.
Beyond these targets, Dangiwa charged FMBN with increasing National Housing Fund (NHF) collection by expanding the subscription net to include more Nigerians.
Experts’ Reaction
Experts in the sector have called for a simplified mortgage process that would ensure timely project delivery and address the growing housing deficit in Nigeria.
The Chief Strategy Officer and co-founder of Green Mortgage, Mr. Noah Ibrahim, identifies high interest rates, limited access to long-term funds, and stringent eligibility criteria as some of the challenges of accessing mortgage opportunities in Nigeria.
He noted that the mortgage industry has grappled with outdated and disconnected systems, often requiring mortgage professionals to juggle multiple tools to manage a single loan.
Expert and business strategist, Mrs. Imelda Olaoye, emphasized the importance of exploring technology to facilitate easy home ownership in Nigeria. She stated that technology has evolved, and it is crucial to leverage the most needed tools to enhance mortgage processes.
Why This Matters
Despite government efforts to reduce the housing deficit in Nigeria, the problem persists, and many Nigerians cannot afford a house.
For those who can afford one, there is limited awareness of the different stages involved in obtaining a housing loan.
Additionally, the process from application to securing the loan is cumbersome, discouraging many potential beneficiaries.
