Access Holdings Plc has disclosed that its mortgage loan portfolio stood at approximately N289.3 billion as of the first quarter of 2025, highlighting both the bank’s contribution to real estate financing and the persistent challenges facing Nigeria’s housing and mortgage sectors.

The figure appeared in the group’s Q1 2025 interim financial report filed with the Nigerian Exchange Group (NGX). While significant, the amount still represents a small fraction of Access Holdings’ N12.2 trillion total loan portfolio, comprising just 2.3% of overall lending activity during the review period.

A Snapshot of Access Holdings’ Mortgage Exposure

Access Holdings segmented its loans into personal and corporate categories, with personal loans—often related to individual borrowing needs like homeownership—reaching N218 billion. As of December 2024, the mortgage loan portfolio had reached N318 billion, but the group’s recent update indicates a slight reduction in this category. Additionally, the bank reported an expected credit loss (ECL) of N9.1 billion, revealing the associated risks in the mortgage market.

Despite these numbers, analysts view mortgage lending as an underutilized channel in Nigeria’s banking sector, largely due to high risk exposure, limited long-term funding, and structural inefficiencies within the housing finance system.

Comparative Landscape: Other Banks in the Mortgage Space

Access Holdings isn’t the only financial institution in the mortgage space, although the overall figures remain relatively low across the industry.

For instance, Stanbic IBTC recorded a modest rise in its Personal and Private Banking (PPB) mortgage loans, which grew from N941 million in 2023 to N1.073 billion in 2024. More impressively, the bank’s retail mortgage loans expanded from N15.184 billion to N26.847 billion within the same period.

Similarly, First Holdco posted a substantial increase in its retail mortgage lending, with figures soaring from N133.091 billion in 2023 to N264.212 billion in 2024, more than doubling year-on-year.

The Larger Mortgage Market: PMBs Show Mixed Performance

The performance of Primary Mortgage Banks (PMBs)—which are at the heart of Nigeria’s housing finance structure—paints a concerning picture. In the third quarter of 2024, the total assets of PMBs stood at N1.412 billion, marking a shocking 99.6% decline from N454.669 billion in Q3 2023.

Despite the downturn in assets, loan volumes increased, with PMB lending rising from N192.274 million in Q3 2023 to N269.595 million in Q3 2024. Similarly, liabilities also increased, from N1.176 billion to N1.412 billion during the same period, indicating higher funding challenges or obligations.

National Housing Fund: Gender Participation and Bureaucratic Hurdles

Insights from the Central Bank of Nigeria’s (CBN) review of the National Housing Fund (NHF) reveal a fairly balanced gender distribution in fund access: 57% male and 43% female applicants. However, one of the most glaring challenges is the length of the loan processing period.

An estimated 70% of PMBs reported that it took over 12 months to process an NHF mortgage application. Though 66% of applicants received approvals, 27% remained in process, and 7% were rejected, raising concerns about the overall efficiency of the system.

Government Response: New Targets and Broader Reforms

In response to the persistent housing deficit, the Federal Mortgage Bank of Nigeria (FMBN) has set ambitious targets under the Renewed Hope Cities and Estates Programme. The bank plans to deliver 5,000 new homes annually and issue 20,000 mortgage loans per year.

Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, emphasized the need for faster processing times and improved customer service. Additionally, the minister urged FMBN to expand the NHF subscriber base, encouraging more Nigerians to join the scheme and access affordable housing finance.

Experts Push for Simpler, Tech-Driven Mortgage Solutions

Industry players have echoed the call for reforming the mortgage system, especially by removing bottlenecks that deter potential homeowners.

Noah Ibrahim, Chief Strategy Officer and co-founder of Green Mortgage, identified high interest rates, lack of long-term funding, and complex eligibility requirements as major obstacles. He noted that many mortgage firms still rely on fragmented systems, forcing professionals to manage loans with multiple outdated tools.

On her part, Imelda Olaoye, a strategist and real estate expert, advocated for technology adoption in simplifying the mortgage application process. She stressed that embracing tech would streamline operations, improve transparency, and expand homeownership access, particularly among younger Nigerians and middle-income earners.

Why It Matters: A System in Need of Overhaul

Despite consistent government efforts and financial sector participation, Nigeria’s housing deficit remains a significant national concern, affecting millions of citizens. Although banks like Access Holdings and First Holdco have increased mortgage offerings, systemic challenges—such as low public awareness, inefficient loan approval structures, and rigid documentation demands—continue to suppress potential growth in the housing sector.

For many Nigerians, owning a home remains a distant dream, largely due to lack of access to affordable financing options. Even those who can afford the initial costs often face daunting bureaucracy, long waiting periods, and unexpected fees that derail their efforts.

Looking Forward: The Path to Affordable Homeownership

If Nigeria is to reduce its housing deficit, stakeholders across the board—from commercial banks to PMBs, regulators, and ministries—must prioritize:

• Digitization of the loan process

• Increased public education on mortgage options

• Reduction in interest rates and loan tenure reforms

• Improved NHF processing turnaround

• Stronger public-private partnerships

Ultimately, the recent update from Access Holdings underscores the growing, yet limited role of mortgage lending in Nigeria’s financial ecosystem. Bridging this gap will require not just capital but bold reforms that prioritize inclusivity, efficiency, and innovation.