Economy
Nigeria’s Mortgage Sector Constitutes 2.5% of GDP—Haman
By Ahmed Rahma
The need for the government to support the mortgage sector in Nigeria so as to expand its contribution to the national Gross Domestic Product (GDP) has been stressed by an expert in the industry.
According to the Managing Director of Abbey Mortgage Bank, Mr Madu Haman, at the moment, the mortgage ecosystem constitutes only about 2.5 per cent of the GDP, whereas, in the United Kingdom, the contribution is about 80 per cent.
He blamed this on the government because it contributes to the difficulties faced in acquiring property in the country, noting that even in Africa, Nigeria was still lagging behind.
Speaking at the Nairametrics’ Business Half Hour, he disclosed that the mortgage sector in South Africa accounts for 50 per cent to 60 per cent of the GDP, while in Ghana, it is about 30 per cent.
He, therefore, declared that Nigeria needs to step up her game when in the mortgage sector by first addressing the problems faced when acquiring land in the country.
He said the Land Use Act contains strenuous processes investors must undergo like the process of getting the Governor’s consent, the bureaucratic process of registering the mortgage and the high cost of registration.
Mr Haman, however, noted that the government could assist in reducing some of these challenges.
According to him, the plan to address the various challenges facing the mortgage sector started as far back as 2001 when the then President, Mr Olusegun Obasanjo, formed a presidential committee to review the legal framework around the mortgage sector, especially amending the Land Use Act and other issues concerning the smooth operation of the mortgage sector.
However, before the approval of such an amendment, another government took over which automatically led to starting the process all over.
Speaking further, he said they had to establish an advocacy association for the mortgage industry called the Mortgage Banking Association of Nigeria and their work is to take care of these issues that the mortgage sector is facing.
He said they also have other institutions, like the Nigerian Mortgage Finance Company, which is partly owned by the participating banks and partly owned by the federal government (the Federal Ministry of Finance and CBN are also involved). The role of this institution is advocacy, i.e., trying to address the challenges facing the mortgage sector.
Also, they have been talking to state governors to see how each state can amend some of their laws to make it easier and smoother for mortgage sectors, noting that some states like Lagos and Kaduna have been very cooperative.
Additionally, he clarified the issues some Nigerians encounter when it comes to accessing NHF loans.
He said the Federal Mortgage Bank is a custodian of the National Housing Fund, so for a contributor to be able to access facilities from the National Housing Fund, they must approach a primary mortgage bank which then processes their request and forwards it to the Federal Mortgage Bank for approval.
He added that before NHF can give out a loan, it will have to check out the following, the property involved, does it have a proper title? What is the applicant’s source of income? Would he be able to meet the repayment of the loan?
All these processes are done at the primary mortgage bank-level before being forwarded to the Federal Mortgage Bank for approval, and then the Federal Mortgage Bank also goes through its own process of checking.
With all these processes, one might look at the loan request as a difficult one, however, the rate at which clients get the facilities is only 6 per cent which is the lowest in the Nigerian market right now.
Abbey Mortgage Bank, according to Mr Haman, is in partnership with private sector providers, most of whom are real estate developers who provide the houses for them to grant mortgages on.
He noted that the partnership is with credible developers, who have the type of houses that meet the requirement of customers, adding that the bank was also in partnership with notable cooperatives, whose members want to access housing finance.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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