…says country faces 28m unit deficit
Chairman, Board of Directors of AG Mortgage Bank PLC, Amb. Felix Nwabuko has disclosed that Nigeria’s housing sector contributed over N11 trillion to the nation’s GDP in 2024, according to figures from the National Bureau of Statistics (NBS).
Despite this milestone, he noted that the country’s housing deficit still stands at more than 28 million units.
Nwabuko made this known in Abuja during the presentation of the bank’s 2024 annual report and accounts, held in commemoration of its 20th anniversary.
He highlighted that the federal government’s Renewed Hope Agenda gained traction in 2024 with greater emphasis on affordable housing delivery, housing finance reform, land titling, and stronger partnerships with private sector stakeholders.
He explained that AG Mortgage Bank PLC continues to play a pivotal role in supporting national housing initiatives, citing the rising adoption of the policy that enables Retirement Savings Account (RSA) holders to access 25% of their pension balances for home equity contributions. According to him, this scheme is helping narrow Nigeria’s housing finance gap.
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“As one of the leading administrators of RSA-linked mortgages, our bank is helping more Nigerians transition from tenants to homeowners. The Help-to-Own initiative of the Family Homes Fund, which is gradually driving mortgage rates closer to single digits, is also a welcome development, and AG Mortgage Bank remains one of its first active players among primary mortgage banks in Nigeria,” he said.
He, however, listed persistent challenges facing the mortgage ecosystem, including poor access to long-term capital, insufficient supply of low-cost housing stock, high construction costs, slow foreclosure processes, and inefficiencies in land administration.
To unlock growth at scale, he advocated for digitised land registries, capital market integration, credit enhancement, and regulatory reforms.
Nwabuko stressed that consolidation is inevitable in the mortgage sub-sector, noting that a strong, innovative institution must emerge to lead with scale, drive acquisitions, or expand through organic growth.
He added that AG Mortgage Bank is positioning itself to play that leadership role in the years ahead.