Options for Sustainable Mortgage Finance in Nigeria

The importance of housing as a basic human necessity cannot be over emphasized. According to the United Nations Centre for Human Settlements (UNCHS), an estimated 21 million new housing units are required each year in developing countries. Records show that Nigeria alone currently has a deficit of about 17 Million houses. Among the efforts aimed at alleviating the housing problem is the introduction of mortgage arrangements to make funds accessible for intending home owners in Nigeria. However, the mortgage sector in Nigeria is currently grossly underdeveloped. This paper focused mainly on exploring the options for making mortgage finance sustainable for the entire population. Using secondary data and well as undertaking a critical review of the existing housing finance framework in Nigeria, the paper identified the non-sustainability of mortgage finance in Nigeria as a problem on housing delivery. It also expound the causes of the non sustainability of mortgage finance in Nigeria as well proffer possible options towards achieving sustainability in this sub sector. Key suggestions is the restructuring of the apex mortgage institution, insurance of mortgage loans, removal of the land use from the Constitution so ease its amendment to evolving needs, and encouragements of more states/ agencies to contribute to the National Housing Fund. Section 1: Introduction 1.1: Context Of all the basic needs of mankind housing has been identified as the most basic needs of mankind for obvious reasons. –the others being for food and clothing. Also, housing is a very important durable consumer item, which impacts positively on productivity, as decent housing significantly increases workers’ health and well being, and consequently, economic growth for the country. Third, it is one of the