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 Nigerian Insurers Association (NIA) has disclosed that seven additional insurance companies have secured full recapitalisation approval from the National Insurance Commission (NAICOM), bringing the industry-wide recapitalisation exercise to a successful conclusion.
In a statement on Friday, NIA Chairman, Mrs Ebelechukwu Nwachukwu, said the milestone represented significant progress towards building a stronger, more competitive and trusted insurance market in Nigeria.
She said the seven companies, alongside the 41 insurance companies and two reinsurance companies earlier approved, had demonstrated resilience, financial discipline and corporate strength by successfully completing the final verification process.
“Having successfully navigated the rigorous final verification process, these companies, alongside the earlier approved 41 insurance companies and two reinsurance companies, have demonstrated exceptional resilience, corporate fortitude, and financial discipline,” Mrs Nwachukwu said.
She added that the successful recapitalisation had positioned the companies to deliver greater value to policyholders and contribute to deeper insurance penetration nationwide.
Mrs Nwachukwu commended NAICOM for its regulatory oversight during the exercise, describing the commission’s approach as fair, structured and focused on strengthening market integrity.
“NAICOM’s strategic foresight and structured execution have elevated the Nigerian insurance industry, reinforcing its position within the broader financial sector as a substantially stronger, highly resilient, and globally competitive market,” she said.
The NIA chairman reaffirmed the association’s commitment to supporting insurance companies as they adapt to new regulatory requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
She said the association would continue to work with NAICOM to promote a sustainable and future-ready insurance sector.
Mrs Nwachukwu also assured policyholders, investors and other economic stakeholders that the recapitalised industry was better positioned to support economic growth.
“With this recapitalization complete, the Nigerian insurance sector enters a transformative era. The industry is fully equipped to settle genuine claims promptly, absorb higher local and international risks, and serve as a cornerstone of financial stability, directly supporting President Bola Ahmed Tinubu’s vision of achieving a $1 trillion economy by 2030,” she said.
By Aduragbemi Omiyale
Capital market operators have been directed to immediately freeze the assets, funds, and other economic resources belonging to six individuals and three entities designated as terrorist financiers by the Nigeria Sanctions Committee (NSC).
This directive was given by the Securities and Exchange Commission (SEC) via a circular to all Capital Market Regulated Entities (CMREs), warning that failure to comply would constitute a violation of the Investments and Securities Act, 2025, and the SEC Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Rules and Regulations.
It said violations could attract regulatory sanctions, including fines, suspension of operations or revocation of registration, reminding capital market operators that all unusual or suspicious transactions must be promptly reported to the NFIU.
The regulator, which stated that the designations were made in line with the Terrorism Prevention and Prohibition Act (TPPA) 2022, listed the six individuals as Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu and Yakubu Ogirima Ibrahim. The three designated entities are Nine to Nine BDC Ltd, Generation Currency BDC Ltd and Abbal Bako & Sons Bureau de Change.
According to the SEC, Hammajama was listed on June 18, 2026, for involvement in terrorism financing and support for the Islamic State West Africa Province (ISWAP), while Usman was designated for providing material support to a designated terrorist organisation through repeated financial transactions.
The commission said Abubakar was listed for involvement in terrorism financing and membership of ISWAP, while Chiroma was designated for allegedly using Bureau De Change (BDC) operations and related corporate entities to facilitate the movement of funds linked to terrorist activities.
Muktar Muhammad Adamu was listed on June 15, 2026, for providing financial support and facilitating transactions linked to the financing network of the ISWAP Okene cell, while Ibrahim was designated for providing material and financial support to the ISWAP Kogi cell.
The SEC said the three entities were listed for their alleged involvement in facilitating and channelling funds connected to the ISWAP Okene financing network.
The commission directed CMREs to immediately identify and freeze, without prior notice, all funds, assets and other economic resources in their possession belonging to the designated persons and entities.
They are also required to report frozen assets and other compliance actions, including attempted transactions, to the Secretariat of the Nigeria Sanctions Committee.
In addition, the SEC directed regulated entities to immediately file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) for further analysis of the financial activities.
It further instructed operators to report as suspicious transactions all cases of name matches in financial transactions, whether occurring before or after receipt of the sanctions list.
The regulated entities are also required to prohibit dealings with the designated persons and entities and continue monitoring for transactions involving them.
The SEC said any findings should be reported to the Nigeria Sanctions Committee through its designated reporting channel.
By Adedapo Adesanya
Dangote Sugar Refinery Plc, Nigeria’s biggest sugar producer, has raised N486 billion ($356 million) through an oversubscribed rights issue as the company moves to reduce its debt burden and strengthen its capital base after three consecutive years of losses.
The company, founded by Mr Aliko Dangote, raised the funds through the issuance of 8.1 billion ordinary shares at N60 per share, according to a filing with the Nigerian Exchange (NGX) Limited on Friday.
The development follows shareholders’ approval of the capital-raising plan at the company’s 20th Annual General Meeting held in April.
In a statement signed by the Company Secretary, Mr Temitope Hassan, the sugar firm said the rights issue is part of efforts to improve its financial position and provide funding to support its long-term growth plans.
The company’s directors are authorised to raise up to N500 billion through a rights issue, on terms and at a time to be determined by the Board.
Dangote Sugar increased its share capital to accommodate the new shares issued under the rights issue. The sugar producer’s board also authorised to allot the shares and the management of any fractional holdings in accordance with regulatory requirements.
The organisation said any shares remaining unallotted after the offer would be cancelled as permitted by law, describing the capital raise as one of the largest rights issues in Nigeria’s corporate history.
The capital raise comes against the backdrop of improved revenue performance but continued losses at the company.
In its 2025 audited results, Dangote Sugar recorded a 24.56 per cent increase in revenue to N829.2 billion, compared with the previous year. The growth was driven largely by strong demand for 50kg sugar, which generated N807 billion in revenue.
Retail sugar sales contributed N17.7 billion, while molasses and freight income generated N4.02 billion and N66.4 million, respectively.
Cost of sales increased by 11.35 per cent to N706.5 billion, largely due to raw material costs of N573.3 billion. This resulted in a gross profit of N122.6 billion.
Despite the improvement in revenue and gross profit, the company recorded a pre-tax loss of N72.2 billion in 2025, although this represented a significant improvement from the N270.8 billion loss reported in 2024.
Lagos remained the company’s largest market, accounting for 55.82 per cent of regional sales, followed by the North with 35.35 per cent, the West with 6.45 per cent and the East with 2.38 per cent.
The fresh capital is expected to provide Dangote Sugar with additional financial capacity as it works to reduce its debt obligations, strengthen its balance sheet and advance its long-term expansion plans.
