AG Mortgage Bank PLC has disclosed that Nigeria’s housing sector contributed more than N11 trillion to the country’s Gross Domestic Product (GDP) in 2024, according to data from the National Bureau of Statistics (NBS).
Despite this contribution, the nation’s housing deficit remains above 28 million units, the bank’s Chairman, Felix Nwabuko, said at the institution’s 20th Anniversary and 2024 Annual Report and Accounts presentation in Abuja.
Nwabuko noted that the Federal Government’s Renewed Hope Agenda had gained momentum in 2024, with a stronger focus on affordable housing delivery, housing finance reform, land titling, and private sector collaboration. He said AG Mortgage Bank continued to play a strategic role in supporting these efforts, particularly through the policy allowing Retirement Savings Account (RSA) holders to access 25% of their pension balances for home equity contributions.
“The bank is one of the leading administrators of RSA-linked mortgages, helping more Nigerians transition from tenants to homeowners,” he said, adding that the Help to Own initiative of the Family Homes Fund (FHF) was also pushing mortgage rates closer to single digits.
He listed challenges in the sector to include limited access to long-term capital, inadequate supply of low-cost housing, rising construction costs, delays in foreclosure processes, and flaws in land administration.
According to him, scaling up the mortgage sub-sector would require digitised land registries, deeper capital market integration, credit enhancement, and regulatory reforms. He further stressed the inevitability of consolidation within the industry, noting that only companies with sufficient innovation and scale would be able to lead growth through acquisitions or organic expansion.
