70% of Nigerians Lack Access to Mortgage Financing

A report by Panterra reveals that around 70% of Nigerians do not have access to mortgage financing, significantly limiting home ownership. Despite the Central Bank of Nigeria reducing its benchmark interest rate to 27% in late 2025, commercial mortgage rates still range from 25% to 30%.

This situation renders housing financing unaffordable for many Nigerians, particularly affecting the middle-income segment. The report identifies rising construction costs and inflationary pressures as major obstacles, with cement prices projected to rise from N8,500 to N13,000 per 50kg bag between 2025 and 2026.

The report warns that escalating costs may lead developers to compromise on construction quality, increasing the risk of structural failures. Additionally, properties located near major infrastructure projects, such as highways and rail stations, command significant price premiums.

The report also notes a shift in residential demand towards more affordable suburban locations, as investors redirect capital towards affordable housing and logistics facilities.