The President of the Mortgage Banking Association of Nigeria (MBAN), Mr. Ayo Olowookere, has emphasized the importance of collaborative efforts across the housing value chain in tackling Nigeria’s housing deficit, which is estimated to exceed 20 million units. Speaking in an interview, Olowookere, who also serves as the Managing Director of Imperial Homes Mortgage Bank, said the real problem lies not just in the sheer number of housing shortages but in the lack of appropriately priced homes. He clarified that while the term “affordable housing” is often misinterpreted as substandard, the real need is for homes priced between ₦15 million and ₦100 million, particularly in urban centres.
He noted that developers are typically reluctant to venture into this segment due to limited profitability and a lack of sustainable financing models. On the demand side, many Nigerians lack the financial backing to purchase these homes, creating a persistent supply-demand mismatch. To change this, Olowookere said MBAN under his leadership is actively engaging stakeholders including secondary mortgage institutions and credit providers to bridge the financing gap and support effective demand.
Additionally, he said advocacy is a key focus, as many Nigerians are unaware of available mortgage options such as the National Housing Fund (NHF) at six percent interest, the Family Homes Funds with subsidised rates, and the Ministry of Finance’s Real Estate Investment Fund (MREIF) offering loans at 12 percent. These programmes, he noted, could significantly improve access to housing finance if more widely publicised and understood.
Despite modest improvements, Nigeria’s mortgage penetration remains among the lowest in Africa, hovering at around 3 to 4 percent. Olowookere attributed this to a lack of vision and prioritisation by successive governments, noting that housing has often been treated as a side project, leading to abandoned and often uninhabitable developments.
He further pointed out that mortgage products have failed to resonate with younger Nigerians, who are the majority of the population. He said MBAN is working with developers, mortgage banks, and realtors to rework existing products to better align with the income realities of younger buyers. According to him, the future of housing finance lies in flexible repayment plans, more intuitive application processes, and better communication through digital channels. He also advocated for consumer-friendly housing loans for items such as rent, furnishings, and home energy systems.
Regarding the amendment to the Pension Reform Act, which now allows contributors to access part of their Retirement Savings Account for home ownership, Olowookere described it as a major success. He disclosed that over ₦50 billion had already been disbursed to more than 9,000 pension contributors since the change. He said MBAN will continue to support the initiative and collaborate with PenCom to expand its reach.
He also acknowledged recent federal initiatives, including the Renewed Hope Housing Development Initiative, which aims to deliver 250,000 housing units in its first phase, and the MREIF’s ₦250 billion launch to fund mortgages for first-time buyers. While these initiatives are promising, Olowookere stressed the need for effective coordination among government agencies and more structured engagement with industry players like MBAN, REDAN, and capital market stakeholders. He warned that without prompt action, the administration may fall short of expectations.
In terms of innovation, Olowookere said MBAN is keen to work with FinTech companies to introduce automation and efficiency into mortgage origination and servicing. He said technologies that streamline underwriting, customer profiling, repayment management, and regulatory compliance could significantly reduce operational risk and expand access. He sees strong potential in partnerships with FinTechs to bring much-needed transformation to the mortgage banking space.
On the topic of recapitalisation, he acknowledged that with the recent increase in capital requirements for commercial banks, similar reforms in the mortgage banking sub-sector might be expected. He said that while MBAN awaits the Central Bank’s final decision, the sector is generally supportive and prepared to respond positively to any policy direction aimed at strengthening balance sheets and operational capacity.
He also highlighted the role of Nigerians in the diaspora, noting that their involvement in the housing sector continues to grow. He praised the Central Bank’s recent initiative to create a new platform to facilitate diaspora investment in the mortgage space.
Reflecting on his vision for MBAN, Olowookere said he hopes to leave behind a legacy of strong advocacy, increased collaboration, and meaningful reform. He said his leadership aims to make the mortgage banking sector more transparent, responsive, and aligned with Nigeria’s broader economic development goals. Drawing a comparison with sectors like telecommunications and pensions, he said housing finance is overdue for the kind of reform that can drive sustainable national growth.
