Increasing Mortgage Finance Efficiency in Nigeria

Nubi, T.G. (2007-10)

Scholarly article


Absence of a mortgage financing mechanism has been widely reported to be one of the most telling indices of underdevelopment. The huge capital outlay involved makes housing the largest form of investment decision by most family making credit inevitable for its procurement. Several efforts had been made in Nigeria to build a sustainable mortgage finance system but there are very few results to show for the efforts. This paper is a comprehensive appraisal of the primary mortgage banks in Nigeria. The survey covers the operating primary Mortgage Institutions (PMI) Lagos and Abuja. The result revealed that the PMIs are undercapitalized and unbundled. Absence of secondary mortgage and mortgage insurance together with poor operation that relies heavily on manual and not taking advantage of IT. It was recommended that PMI should be recapitalized, mortgage insurance introduced, and mortgage finance unbundled while the deposit money banks be encouraged to invest in mortgage.