Nigeria’s mortgage market remains below 1% of GDP, says Credit Direct Report

Nigeria's mortgage market lags significantly behind other African nations, with outstanding loans accounting for less than 1% of the country's Gross Domestic Product (GDP). This underdevelopment leaves home ownership out of reach for many Nigerians.

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Nigeria’s mortgage market remains one of the least developed on the continent, with outstanding mortgage loans accounting for less than 1% of the country’s Gross Domestic Product (GDP), according to Credit Direct’s 2025 Nigeria Credit Landscape Report.

The Credit Direct 2025 Nigeria Credit Landscape Report identifies several structural challenges. These include high borrowing costs, a scarcity of long-term funding for mortgage institutions, low household incomes, and difficulties with land administration and property title documentation. These factors collectively make formal mortgage financing inaccessible for a large portion of the population.

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By comparison, mortgage lending accounts for more than 16% of GDP in South Africa and about 2% in Kenya, illustrating the wide gap in housing finance across Africa.

Consequently, many Nigerians rely on personal savings, cooperative societies, or phased construction as funds become available. While this allows for eventual home ownership, it prolongs building timelines and limits large-scale housing development. The report stresses the need for coordinated reforms to expand access to long-term funding, improve land registration, and develop financing models that align with the income realities of Nigerian households.

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The report said addressing these challenges will require coordinated reforms across the housing finance ecosystem.

Beyond increasing home ownership, a robust mortgage market could yield substantial economic benefits. It could stimulate growth in construction, manufacturing, and financial services, creating jobs and fostering broader economic expansion. Credit Direct, an embedded finance business, aims to contribute to this by integrating credit solutions into partner supply chains and payment flows.

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A deeper housing finance market could stimulate construction, manufacturing, financial services, and other sectors linked to real estate, while helping to create more investment and jobs and support broader economic growth.