The Real Estate Developers Association of Nigeria (REDAN) has identified high interest rates and inadequate long-term funding as major challenges affecting housing delivery in Nigeria.
REDAN President, Oba Akintoye Adeoye, said this at a two-day mortgage finance roundtable 2.0. on Friday in Abuja,
The News Agency of Nigeria (NAN) reports that the conference, themed “Mortgage Finance in Nigeria, Building Resilience, Partnership and Scale” was organised by Mortgage Banking Association of Nigeria.
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The roundtable was organised to examine the state of mortgage finance in Nigeria and address challenges affecting the sector.
Adeoye said access to mortgage finance remained difficult in Nigeria due to high interest rates, limited availability of long-term funds and lengthy approval processes.
According to him, the difficulties had forced many Nigerians and property developers to adopt alternative financing arrangements.
“In our country, Nigeria, access to mortgage finance remains a major challenge due to high interest rates, limited availability of long-term funds and lengthy mortgage approval processes.
“These challenges have compelled many Nigerians and estate developers to adopt financing engagements, including personal savings, self-financing, instalment payment schemes and site and services models.
“These approaches have helped sustain housing delivery, but they are not sufficient to achieve the scale required to address our housing needs,” he said.
The REDAN president said addressing the challenges required a stronger mortgage system, increased funding for the National Housing Fund (NHF) and innovative financing models.
“To make affordable housing more accessible to Nigerians, we must strengthen the mortgage system, increase funding for the NHF scheme under the administration of the Federal Mortgage Bank of Nigeria.
“We also need to develop innovative and sustainable financing models that address the realities of our markets,” he said.
Adeoye said developers needed increased access to finance to deliver more houses and improve the quality of housing projects.
He also stressed the need for accessible and sustainable mortgage products to enable more Nigerians to become homeowners.
“If we want to deliver more houses, we need increased access to finance. If we want better quality development, we need affordable capital.
“If we want more Nigerian families to become homeowners, we need accessible, affordable and sustainable mortgage products,” he said.
Adeoye urged developers, mortgage institutions, government regulators and investors to strengthen partnerships and translate their commitments into practical actions to improve housing delivery.
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