An overview of residential real estate financing in Nigeria

The housing sector, changes in the housing markets, and the systems of housing finance have significant implications on the financial markets, macroeconomic stability, and monetary policy. Therefore, most economies in the developed world adopt policies that make investment in their housing sectors attractive, resulting in their ratio of outstanding mortgage to GDP being above 50%. However, in most of the emerging/developing economies like Nigeria, even with resources at their disposal, the ratio is below 2%. This paper examines aspects of financing for housing acquisition over a period of time in Nigeria. The conclusion highlights pitfalls that need to be overcome; one of which is the need to adopt other means of mobilizing long-term liabilities to fund housing finance rather than depending on short-term deposit liabilities.