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Comparing Nigerian Mortgage Structures to Global Standards mortgage

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Comparing Nigerian Mortgage Structures to Global Standards
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The mortgage industry serves as a crucial pillar in fostering homeownership, economic stability, and urban development worldwide. While the basic concept of mortgages remains consistent—providing loans to individuals to buy homes—the structures, regulations, and accessibility of mortgage systems vary significantly from one country to another. Nigeria’s mortgage structure offers unique insights, especially when compared to global standards. This article explores these differences, highlighting the challenges and opportunities within Nigeria’s mortgage system while drawing lessons from international best practices.

The mortgage industry serves as a crucial pillar in fostering homeownership, economic stability, and urban development worldwide. While the basic concept of mortgages remains consistent—providing loans to individuals to buy homes—the structures, regulations, and accessibility of mortgage systems vary significantly from one country to another. Nigeria’s mortgage structure offers unique insights, especially when compared to global standards. This article explores these differences, highlighting the challenges and opportunities within Nigeria’s mortgage system while drawing lessons from international best practices.

Overview of Nigerian Mortgage Structures
Nigeria’s mortgage system is primarily overseen by the Federal Mortgage Bank of Nigeria (FMBN), alongside commercial banks and primary mortgage institutions (PMIs). The key components of the system include:

National Housing Fund (NHF): Established in 1992, the NHF serves as a mandatory savings scheme where employees contribute 2.5% of their monthly salaries. Contributors can access low-interest mortgage loans through the fund.

Interest Rates: Mortgage interest rates in Nigeria typically range from 6% to 25%, depending on the institution and funding source. NHF loans are offered at subsidized rates of about 6%, whereas commercial mortgages attract much higher rates due to risk and inflation considerations.

Loan Tenure: Loan tenures in Nigeria usually span 5 to 20 years, with shorter tenures compared to developed countries. This limits affordability for many prospective homeowners.

Access and Eligibility:

Access to mortgages in Nigeria is constrained by high-interest rates, stringent collateral requirements, and insufficient credit infrastructure. This has resulted in a low mortgage penetration rate of less than 1% of GDP, compared to 50%-70% in advanced economies.

Comparing Global Standards
Interest Rates and Affordability
Globally, mortgage interest rates are influenced by central bank policies, inflation, and economic conditions. Developed nations such as the United States, Canada, and the United Kingdom offer relatively low-interest rates, typically between 2% and 6%. These low rates are supported by stable macroeconomic environments and robust financial markets. Conversely, Nigeria’s high inflation and macroeconomic instability contribute to elevated mortgage rates, reducing affordability for average citizens.

Loan Tenure

Longer loan tenures in advanced economies—often exceeding 30 years—help make monthly payments more affordable, enabling more people to access homeownership. In contrast, Nigeria’s shorter loan tenures increase the financial burden on borrowers, deterring participation in the mortgage market.

Credit Infrastructure
Developed countries have advanced credit scoring systems and frameworks that assess borrowers’ creditworthiness. This transparency reduces risk for lenders and broadens access to mortgage products. Nigeria, however, struggles with inadequate credit reporting systems and high default risks, further limiting mortgage availability.

Government Support and Policies
Countries with well-established mortgage markets benefit from government-backed initiatives. For example, the United States has Fannie Mae and Freddie Mac, which provide liquidity and stability to the housing finance market. Similarly, Canada’s Canada Mortgage and Housing Corporation (CMHC) ensures mortgage affordability and availability. In Nigeria, while the FMBN plays a central role, its resources and impact are limited, leaving significant gaps in housing finance.

Challenges in Nigeria’s Mortgage System
High Construction Costs: The cost of building materials and inadequate infrastructure make home construction expensive, exacerbating affordability issues.

Limited Secondary Market: Unlike developed nations with thriving secondary mortgage markets that provide liquidity, Nigeria lacks a well-functioning secondary market.

Low Housing Supply: An estimated housing deficit of over 20 million units hampers the effectiveness of the mortgage system, as demand far exceeds supply.

Macroeconomic Instability: Currency volatility, inflation, and inconsistent policies discourage long-term lending and investment in the housing sector.

Opportunities and Lessons from Global Best Practices
Developing a Secondary Mortgage Market: Establishing institutions similar to Fannie Mae or Freddie Mac could enhance liquidity in Nigeria’s mortgage market, enabling lenders to issue more loans.

Innovative Financing Models: Embracing alternative financing options such as rent-to-own schemes, micro-mortgages, and Islamic financing could expand access to affordable housing.

Strengthening Credit Infrastructure: Building robust credit reporting systems and financial literacy programs can improve trust between lenders and borrowers.

Government Incentives: Policies like tax incentives for developers, subsidies for low-income households, and reduced import duties on construction materials can stimulate growth in the housing sector.

Conclusion
Nigeria’s mortgage structure faces significant hurdles, including high-interest rates, short loan tenures, and inadequate housing supply. However, by adopting global best practices and tailoring them to local contexts, Nigeria can unlock the potential of its mortgage industry. Developing a robust and inclusive mortgage system is not just a financial imperative but a critical step toward addressing the country’s housing deficit and improving the quality of life for millions of Nigerians

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Adron CEO Restates Support for Traditional Institutions During Oyo Palace Visit

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Adron CEO Restates Support for Traditional Institutions During Oyo Palace Visit

The Chairman, Adron Homes and Properties Limited, Aare Adetola Emmanuel-King, has reiterated the company’s unwavering commitment to Nigeria’s cultural diversity and traditional institutions during a courtesy visit to the Alaafin of Oyo, His Imperial Majesty, Oba Abimbola Akeem Owoade I.

According to the Adron CEO, the visit reflects the company’s belief that national development must be anchored on respect for heritage, culture, and indigenous authority across all ethnic nationalities.

“Nigeria’s greatest strength lies in its diversity. At Adron Homes, we recognise that culture and tradition are not obstacles to development, but the very foundation upon which sustainable progress must be built,” Emmanuel-King stated.

He emphasised that Adron Homes’ engagement with traditional institutions is inclusive and nationwide, cutting across regions and ethnic lines as part of its broader vision for unity and shared prosperity.

“Our respect for traditional institutions is not limited to any one region. We honour royal fathers across Nigeria because they are custodians of our identity, values, and social stability,” he added.

The Adron Chairman noted that the company’s expanding footprint across several states continues to contribute to housing delivery, job creation, and economic empowerment, while aligning modern real estate development with indigenous values.

“We remain committed to building communities that serve present needs without eroding the cultural heritage that future generations must inherit,” Emmanuel-King said.

He further reaffirmed Adron Homes’ readiness to support initiatives that promote cultural preservation, tourism, and community development, stressing that collaboration between the private sector and traditional institutions is vital for inclusive national growth.

In his response, the Alaafin of Oyo, Oba Abimbola Akeem Owoade I, commended Adron Homes for recognizing culture and tradition as pillars of development, offering royal prayers for the company’s leadership, continued success, and the peace and unity of Nigeria.

The visit concluded with royal blessings and goodwill, reinforcing Adron Homes’ position as a corporate brand committed to cultural solidarity, inclusivity, and a diverse future for Nigeria.

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Adron CEO Reaffirms Support for Nigeria’s Diverse Cultures, Traditional Institutions

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Adron CEO Reaffirms Support for Nigeria’s Diverse Cultures, Traditional Institutions

The Founder and Chairman of Adron Homes and Properties Limited, Aare Adetola Emmanuel-King, has reaffirmed the company’s unwavering commitment to the preservation and respect of Nigeria’s diverse cultures and traditional institutions, describing them as vital partners in sustainable national development.

Speaking after a landmark courtesy visit to the House of Oduduwa on Tuesday, 6th January 2026, hosted by His Imperial Majesty, Kabiyesi Arole Oduduwa, Olofin Adimula, the Oonirisa of Ife, HIM Oba Adeyeye Enitan Babatunde Ogunwusi, CFR, Ojaja II, the Adron CEO stressed that the company’s engagement with royal institutions transcends ethnicity and regional boundaries.

According to Aare Emmanuel-King, Adron’s collaboration with traditional authorities is not limited to Yoruba land, but reflects a broader national philosophy that recognises the importance of all ethnic cultures and custodians of heritage across Nigeria in fostering unity, stability, and development.

“At Adron Homes, we believe that land is sacred and that development must be carried out with deep respect for culture, history, and traditional authority — not just in the South-West, but across every region of Nigeria,” he said.

The Adron CEO highlighted the company’s extensive footprint nationwide, noting its contributions to housing delivery, job creation, and economic empowerment across multiple states. He added that meaningful development thrives best when modern enterprise works in harmony with indigenous values and institutions.

As part of Adron’s long-term vision, Aare Emmanuel-King also announced plans for a landmark luxury estate project, ORISUN WHITE PARADISE RESORT, spanning over 200 acres in Ile-Ife, designed to blend modern luxury with cultural identity and tourism.

He expressed appreciation to Kabiyesi Oonirisa for the warm reception and royal blessings, describing the visit as a historic milestone that reinforces Adron Homes’ position as a corporate brand committed to cultural respect, inclusivity, and sustainable development across Nigeria.

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Pelican Valley Estate drives CSR via widows outreach

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Pelican Valley Estate drives CSR via widows outreach

Pelican Valley Nigeria Limited, a real estate company, through its foundation, Oko Opo Foundation, has reinforced its corporate social responsibility drive on Boxing Day as its flagship Pelican Valley Estate in Abeokuta hosted a large-scale outreach providing healthcare, financial assistance and educational support to widows.

In a statement, it was noted that the Oko Opo Widows Foundation, a non-profit organisation which caters for widows, orphans and less privileged members of society, has been lending helping hands to widows in the last three years, filling the void left by the departure of their husbands, and wives, as in the case of widowers.

It stated, “In carrying out this selfless service, the Foundation has established partnerships with well-meaning individuals and organisations, secured donations and grants and provided support to numerous beneficiaries as it focuses its programmes on education, healthcare and economic empowerment.”

The Founder, Dr Babatunde Adeyemo, who also doubles as the Chief Executive Officer of Pelican Valley Nigeria Limited, described the gathering as a significant milestone in the journey to empower widows, orphans and the less privileged in society.

He noted that it was a time to celebrate not only the foundation’s achievements but also the resilience and determination of its beneficiaries, pledging to remain unrelenting in making a positive impact in the lives of people.

“We celebrate the widows who have found hope again, the orphans who have discovered a sense of belonging, and the less privileged who have been given succour. Philanthropy is borne out of a passion for lifting widows and the less privileged,” he said, adding that it is devoid of any political undertone.

He pledged to build houses for widows and fund free legal service for any widow facing persecution, injustice or being denied her rights in her matrimonial home due to the loss of her husband.

Adeyemo said, “Over the past year, Oko Opo Foundation, a non-governmental and not-for-profit organisation established to rekindle the hope of widows, has worked tirelessly to provide support and resources to those who need it most.

“As I reflect on our journey so far, I am reminded of the passion and commitment that drove me to establish this Foundation. As a journalist and entrepreneur, I have seen firsthand the impact of poverty and inequality on our society. I have witnessed the struggles of widows and orphans, and I have felt the weight of responsibility to make a difference.

“Oko Opo Foundation was born out of this sense of responsibility. Our mission is to rekindle hope in the lives of widows, orphans and the less privileged. We aim to provide them with the support and resources they need to overcome their challenges and achieve their goals. Let me assure you that the Oko Opo Foundation will not relent in its noble efforts to rekindle hope and advocate for the improved welfare of widows, orphans and the less privileged in our society. I, personally, will continue to work tirelessly, using every resource at my disposal, to empower the needy. We also want to seize this medium to appreciate the contributions of donors, partners and volunteers who have made our work possible. As we look to the future, I am excited about the prospects ahead. We will continue to innovate and expand our programmes, seeking new and better ways to serve our beneficiaries.”

According to the statement, the widows had earlier received free medical screening and counselling for non-communicable ailments such as hypertension and blood sugar level, with necessary drugs provided for them courtesy of the Foundation’s medical outreach, as was the case in 2024.

It added, “Among the women that shared their soul-lifting stories yesterday about how Adeyemo brought succour to each of them through the Foundation was Mrs Titilope Adewunmi, widow of the late Ekiti State indigene, Wale Adewunmi, who practised journalism all his life in Ogun State before his demise in the middle of last year.

“Adewunmi narrated that the help was timely, happening just as she was about to head to a burial ground in Abeokuta with tearful eyes for the interment of her late husband when the call that changed her life and that of her first daughter came from the Oko Opo Foundation, informing her that she had been placed on a stipend for six months with free medical service in any hospital in the town at the expense of the Foundation. To cap it all, she said she was also informed that one of her children would be supported to further his/her education up to the university level.”

– PUNCH

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