Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Don urges FG to restructure mortgage system

27 October 2015, 17:56

Lagos - A university lecturer, Prof. Timothy Nubi, on Tuesday told the Federal Government to restructure Nigeria’s mortgage system to position it for better service delivery.

Nubi, who is of the Department of Estate Management in the University of Lagos, made the call in an interview with the News Agency of Nigeria (NAN) in Lagos.

He said that solution to the nations' housing deficit would not be possible without a functional and sustainable mortgage system.

Nubi said that Nigeria had failed to solve its housing problem because short-term funds were being used to finance long-term projects.

According to him, housing projects are long-term projects and should be funded with long-term loans.

Nubi argued that a viable mortgage system was the bedrock of housing development.

Also read: Abuja housing show highlights need for provision of homes 

“Presently in the country, accessing funds to build houses is very difficult, due to the near-absence of a functional mortgage sector.

''This is despite the fact that mortgage system had been in operation in the country for many years.

“The fact that its impact has not been felt in the sector compared to what obtains in advanced countries shows that a more pragmatic strategy must be adopted to bridge the nations' housing deficit.''

Nubi said that other developed and developing countries were able to overcome their housing problems because they gave mortgage loans at single digit interest rates.

"And the loan is spread over a long period of time to enable the developer recoup the money and payback,’’ he said.

The don said that interest rates or charges payable on a mortgage and the tenure of the loan were critical elements of affordability.

He suggested that the mortgage system should be streamlined to be given at single digit interest rates and spread over a long period of time, like 20 to 25 years.

Nubi noted that embracing such system would enable more people to be able to take and repay mortgage loans.

“The Primary Mortgage Institutions still lend at very high interest rates in addition to asking for deposits which negate the quest for a virile mortgage sector that would aid house ownership.

“If government structures 20-25 years mortgage at 7-8 per cent -- which is even still higher anyway, many Nigerians will own houses.

“Because the rent Nigerians are paying right now is more than enough of what they need to service their mortgage and own the house,” he added.




Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...