Economic and Financial Review


Central Bank of Nigeria


Housing Finance, Mortgage Finance, Housing, Nigeria


This article examines the role of the mortgage industry in economic development with a view to identifying its problems, challenges and opportunities. Possible areas of assistance from other stakeholders are also highlighted. The article discussed the evolution of mortgage banking and financing in Nigeria and the demand/market for mortgage sector finance services in Nigeria. It estimates that Nigeria needed N50 billion annually to provide an estimate of 8 million housing units in 2000. The article then examines the Federal Mortgage Bank of Nigeria (FMBN) in the last decade (1990 - 2000) and National Housing Fund (NHF) as well as the FMBN within the New Dispensation and the National Housing Trust Fund (NHTF). The roles and impact of mortgage industry in economic development-comparative global perspective involved the brief examination of country experiences from Hong Kong, Ghana and China. The article further examines the role of mortgage institutions in affordable housing in Nigeria which include: mobilizing deposits from the public; granting loans and advances to individuals and corporate bodies for the acquisition of houses; offering technical advisory services to the public for the purchase and construction of houses; estate development and management services; public enlightenment and awareness on the National Housing Fund (NHF) Scheme; and increased participation in housing development by other financial institutions. The article concludes by enumerating the problems, challenges and opportunities of the Nigerian Mortgage industry.

Author Bio

Mr. Omotosho is the Executive Secretary, Mortgage Banking Association of Nigeria.

Publication Title

CBN Economic and Financial Review (EFR)





Recommended Citation

Omotosho, K. (2005). The Role of the Mortgage Industry in Economic Development. Economic and Financial Review. 43(4), 17-28.



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