Nigeria has a modest growing mortgage market evidenced by a compound annual growth rate (CAGR) of 43% recorded for mortgage loans in the last three years. In particular, the Industry recorded higher growth in loans in 2014 and 2015 due to the recapitalization of mortgage banks in 2014 and the commencement of operations of the Nigeria Mortgage Refinance Company (NMRC) in 2015. The number of primary mortgage banks in operation increased from 40 to 42 in 2014 and NMRC was able to refinance mortgages amounting to ₦1.7 billion in 2015. Industry growth slowed in 2016 and remains subdued in 2017, on account of a tougher macro-economic climate, evidenced by a higher interest rate environment and high inflation. As at 31 December 2016, the Industry’s gross loans and advances portfolio stood at ₦154 billion, a 9% dip from the previous year.
This report provides a broad insight of the Mortgage Banking Industry. In particular, the report:
The data and other information used in this report were obtained from a combination of primary and secondary sources. The primary sources of information include a mortgage lenders’ survey, face-to-face and telephone interviews with industry operators and regulators. Secondary sources of information include third party research papers, industry and trade associations, other print and electronic media.
Agusto & Co. has targeted the following audience for the purpose of compiling this report.