'Lack of access to mortgage is a major challenge to the real estate sector'- MD says

In an interview with Daily Trust, Jatto said the inability to access mortgage is affecting the real estate sector.

He went on to shed on light on the things that prevent Nigerians from getting mortgage.

"There are many factors affecting mortgage financing in Nigeria. The capacity of the Primary Mortgage Institutions (PMIs) which serve as the vehicle through which citizens can access the National Housing Fund (NHF) is too small. These PMIs are really not financially strong enough to provide the needed fund to the people. It is not long that their minimum capital base was raised to N200 million and how much is that compared to those who want to access fund for housing.

Secondly, the Federal Mortgage Bank of Nigeria (FMBN) is not fully funded to meet the needs of developers as well as people in terms of access to loan. The bank is not fully funded because their capital base was raised to N5 billion recently. If developers have access to mortgage and loan, it would be better for the country."

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The MD also proffered a solution to Nigeria's 17 million housing deficit.

"I think the way out of the 17 million housing deficit is for the Federal Government to make access to mortgage easier, open the market, support the FMBN with the injection of needed capital which will enable it to be fully functional. I think if that is done, it would be easier for developers to produce houses and the people who want to own a house can also afford it.

Also, the Federal Government should encourage private investors in the housing sector. The private investors are optimistic about the sector but they are reluctant because of the perceived lack of attention given to the sector by the Federal Government. The housing sector is one sector that if properly harnessed can do more than just giving Nigerians homes. If the market is well established, many people would be employed, more houses would be provided and the deficit we are talking about would not be there."