For many nigerians that have served the government or been into the civil service for donkey years it is almost impossible that they save enough to own a piece of land talk-less having money to build their own houses.
Therefore, many Nigerians do require one form of assistance or the other to become landlords. This assistance normally should come in form of mortgage, however how many Nigerians can really access mortgage to get their own houses? Does our mortgage system really work?
Mortgages are used by individuals and businesses to make large real estate purchases without paying the entire value of the purchase up front. A mortgage is a debt instrument, secured by the collateral of specified real estate property that the borrower is obliged to pay back with a predetermined set of payments.
The Housing Sector plays a more critical role in a country’s welfare than is always recognized because it directly affects not only the well-being of the citizenry but also the performance of other sectors of the economy.
The Federal Mortgage Bank of Nigeria (FMBN), established in 1956, operates as a vehicle for increasing the mobilization of long-term funds, lending volume and expansion of mortgage lending services to all segments of the Nigerian population.
In Nigeria, mortgage financing has been a major area of concern, identified as one of the most formidable constraints in the housing sector. The recognition of the critical importance of finance in housing delivery led to the establishment of the Nigerian Mortgage Refinance Company in June 2013.
The NMRC was set up to bridge the funding cost of residential mortgages and promote the availability as well as the affordability of good housing to Nigerians by providing increased liquidity in the mortgage market through the mortgage and commercial banks.
Policies of various arms of government in Nigeria had been unstable over the years due to frequent changes and instability in the nation’s system. This instability can be attributed to the government’s failure to develop a viable and sustained housing finance system either because of lack of expertise, up to date and knowledgeable industry leaders especially in the policy making arms, lack funding for relevant institutional agencies/department, political and selfish gains.
This leads us to the challenges of Housing in Nigeria.
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