Top Mortgage Banks in Nigeria

Mortgage finance which is a much needed facility in Nigeria today, is not very easy to access parcularly due to misinformaon and bolenecks surrounding accessing Mortgage loans. However in the face of these challenges, some mortgage banks have connued to disnguish themselvesinprovisionofmortgagefaciliestoNigerians. Below are some of the best mortgage banks operang in Nigeriatoday

FBNMORTGAGESLTD

First Bank of Nigeria Mortgages Limited is one of the best opons in offering good mortgage services. With years of experience in delivering quality services in the banking industry, the FBN mortgage bank aims at giving the best mortgage banking services and products that reflects its dominance of its parent– First Bank in the financial services industryofthecountry. This financial instuon provides a wide range of mortgage and real estate financing soluon, to help their growing clients. Through this mortgage services, they hope to help this customers make them have an ideal homeownership andrealestatedevelopment.

ABBEYMORTGAGEBANKPLC

Abbey Mortgage Bank Plc is arguably the best, largest and most profitable, non-aligned primary mortgage bank in the country. The bank got it's license from the Central Bank of Nigeria and Federal Mortgage Bank of Nigeria (FMBN), together with seven other naonal Primary Mortgage Banks (PMB). The mortgage instute also got an accreditaon for theNaonalHousingFunding(NHF)on-lendingfacilies.

Abbey Mortgage bank offer various mortgage and investment products. This is complemented with the guidance and advisory services which they offer to corporate organizaons, including individuals to enable

The Nigerian real estate sector plays a significant role in the country's economy, serving as a key driver of growth and development As the most populous country in Africa, Nigeria's real estate sector is diverse and dynamic, encompassing both residenal and commercial properes. This overview aims to provide a comprehensive understanding of the Nigerian real estate sector, focusing on itscurrentstateandthepotenalfordigitaltransformaon. One of the key drivers of digital transformaon in the Nigerian real estate sector is the increasing penetraon of mobile phones and internet access. This has facilitated the emergence of online property lisng plaorms, allowing buyers and sellers to connect more easily Addionally, digital plaorms provide real estate developers and investors with valuabledataandinsightsfordecision-making.

Furthermore, digital transformaon in the Nigerian real estate sector has the potenal to address various challenges, including limited access to financing, lack of transparency, and lengthy documentaon processes. By digizing these processes, stakeholders in the sector can reduce costs, eliminatebolenecks,andimproveoverallefficiency

In recent years, the Nigerian real estate sector has embraced the wave of technological advancements that have revoluonized various industries worldwide This transformaon, oen referred to as digital transformaon, hassignificantlyimpactedthewayrealestatetransaconsare conducted, operaons are managed, and customer experiences are enhanced The integraon of digital technologies in the Nigerian real estate sector has brought about unparalleled opportunies for growth, efficiency, and transparency.

The advent of digital transformaon has disrupted tradional pracces in the real estate sector, challenging long-standing convenonal methods. Now, stakeholders throughout the value chain, including buyers, sellers, developers, real estate agents, and property managers, are adapng to new ways of conducng business Digitalizaon has streamlined processes, eliminated bureaucrac hurdles, and empowered market parcipants with real-me access to valuable informaon, such as property lisngs, market values, and legal procedures. Consequently, this has fostered increased efficiency, improved decision-making, and reduced transaconalrisks.

The widespread adopon of digital technologies has also ushered in a new era of transparency in the Nigerian real estate sector Previously, opacity and lack of informaon plagued the industry, making it difficult for buyers and investors to assess the true value and credibilityof properes. However, with digital transformaon, property seekers now haveaccesstocomprehensiveonlinedatabases,virtualtours, and expert guidance, enabling them to make more informed choices. This transparency has not only elevated consumer trust but also created a level playing field for both seasoned andnoviceparcipantsintherealestatemarket.

However, it is important to note that digital transformaon in the Nigerian real estate sector sll faces some challenges, such as limited internet access in remote areas, inadequate legal and regulatory frameworks, and resistance to change from industry stakeholders. Addressing these challenges will require collaboraon between the government, industry players, and technology providers to ensure a smooth and inclusivetransion.

Moreover, digital transformaon has catalyzed innovaon and accelerated the emergence of property technology startups in Nigeria These technology-driven companies leverage digital tools and plaorms to address pain points within the real estate sector From property search engines and real-me data analycs to online rental plaorms and peer-to-peer property sharing applicaons, the Nigerian property technology ecosystem has transformed the way properes are discovered, evaluated, rented, and managed. This surge of entrepreneurial acvity has not only injected dynamism into the industry but also fueled economic growth, jobcreaon,andincreasedforeigndirectinvestment.

AstheNigerianrealestatesectorconnuestoembracedigital transformaon, it is vital for stakeholders to understand and adapt to the evolving landscape. This paper aims to explore the impact of digital transformaon on the Nigerian real estate sector, crically assessing its benefits, challenges, and potenalforsustainedgrowth.Byexaminingthecurrentstate of digital transformaon, analyzing case studies, and providing aconable recommendaons, this research seeks to equip industry players with valuable insights that can drive strategic decision-making and ensure their compeveness inanincreasinglydigitalworld.

The impact and benefits of digital transformaon on the Nigerian real estate sector cannot be overemphasized as is listedbelow;

1 Increased Efficiency and Producvity: Digital transformaon has significantly enhanced the efficiency and producvity of the Nigerian real estate sector. Through the use of digital plaorms and technologies, real estate agents and agencies can streamline their operaons, automate repeve tasks, and eliminate paperwork. This has led to faster and more accurate processes, allowing for higher producvitylevelsandreducedturnaroundme.

2. Improved Access to Informaon: Digital transformaon has brought about an increased accessibility to informaon in the Nigerian real estate sector Online lisng portals and real estate websites have made it easier for potenal buyers and renters to search for properes, view images and videos, and gather informaon about prices, availability, and amenies. Thishasempoweredconsumerswiththeabilitytomakemore informed decisions and has reduced the informaon asymmetry that oen exists in tradional real estate transacons.

3. Enhanced Customer Experience: The digital transformaon of the Nigerian real estate sector has greatly improved the overall customer experience. With the availability of online plaorms, potenal buyers and renters can conduct virtual property tours, communicate with agents and agencies through chatbots or online messaging systems, and even complete transacons online. This level of convenience and accessibility has revoluonized the customer experience and made the enre real estate process more user-friendly and efficient.

4. Increased Transparency and Trust: Digital transformaon has also contributed to increased transparency and trust in the Nigerian real estate sector Through the use of blockchain technology, property transacons can be stored in a secure and immutable ledger, reducing the risk of fraud or tampering. Addionally, digital plaorms oen include reviews and rangs from previous clients, allowing potenal buyers and renters to make more informed decisions and trustthereputaonofagentsandagencies.

5. Cost Savings: The adopon of digital technologies in the Nigerian real estate sector has resulted in significant cost savings for both agents and consumers. Tradional methods of adversing, such as print media and physical signage, can be expensive and have limited reach However, digital plaorms allow for targeted adversing and wider exposure at a fracon of the cost. Furthermore, the reduced need for physical paperwork and in-person meengs can lead to cost savingsintermsofme,travelexpenses,andofficespace.

6 Empowering Small-scale Developers: Digital transformaon has leveled the playing field for small-scale developers in the Nigerian real estate sector. Online lisng plaorms and social media markeng have provided these developers with greater visibility and reach, enabling them to compete with larger, more established players. This has led to a more diverse and compeve real estate market, providing moreoponsforbuyersandrenters.

Overall, the impact and benefits of digital transformaon on the Nigerianrealestate sector have been profound. Increased efficiency, improved access to informaon, enhanced customer experience, transparency and trust, cost savings, and empowerment of small-scale developers are just a few of the advantages that digital transformaon has brought to this industry

Mortgage holds substanal significance in the housing sector as it plays a crucial role in the acquision of property In Nigeria, like many other countries, the concept of mortgage has emerged as an essenal financial instrument for individuals and families striving to own or invest in real estate. This form of loan facilitates access to funds necessary for purchasing a property, providing homebuyers with an opportunity to spread the cost of purchasing a home over an extended periodofme.

Mortgage also serves as a tool for social empowerment, allowing individuals and families to enhance their standard of living and build assets. By providing long-term financing opons at reasonable interest rates, mortgage presents the opportunity for home ownership to a broader segment of the populaon, including those who may not have sufficient upfront funds to purchase a property outright. As a result, mortgage fosters wealth creaon and reduces socioeconomic inequality by enabling more people to parcipate intherealestatemarket.

In Nigeria, with a growing populaon and limited resources, the demand for affordable housing has increased exponenally. Mortgage is supposed to help homebuyers to leverage borrowed funds to acquire properes, mortgage offers a potenal soluon to bridging the gap between housing supply and demand.

However, the efficacy of mortgage in Nigeria's housing sector warrants a closer examinaon Several factors influence its effecveness, including the accessibility of mortgage loans, interest rates, loan terms, and legal frameworks Understanding the funconing of mortgage in Nigeria is instrumental in assessing its overall impact and determining itseffecvenessinaddressingthecountry'shousingdeficit. Examining the current state of mortgage mechanisms, regulatory frameworks, potenal challenges, and stories, it therefore begs the queson, “Does mortgage work in Nigeria?"

One of the main challenges and limitaons that mortgage systems in Nigeria typically face is the issue of high interest rates. This poses a significant obstacle for individuals and businesses seeking to obtain a mortgage loan. High interest rates increase the overall cost of borrowing and can make it difficultformanyNigerianstoaffordmortgagepayments.Asa result, this limits access to housing finance and prevents a largeporonofthepopulaonfrombecominghomeowners. Another major challenge is the lack of awareness and understanding about mortgage systems in Nigeria. Many Nigerians are not fully aware of the opons and benefits available to them through the mortgage market. This lack of awareness oen leads to misconcepons and mistrust surrounding mortgage products, ulmately discouraging potenalborrowersfromconsideringmortgagefinancingasa viable opon. The lack of informaon and educaon about mortgage systems hinders the growth and development of themortgageindustryinNigeria.

Legal complexies also pose a significant challenge for mortgage systems in Nigeria. The legal framework governing mortgages and property rights in the country can be complex and convoluted. This complexity creates barriers for lenders and borrowers alike, making it difficult to navigate the mortgage process Ambiguous property laws, unclear regulaons, and lengthy legal procedures can deter potenal investors and lenders from parcipang in the mortgage market. Moreover, these legal complexies can lead to disputes and ligaon, further delaying the process of obtainingamortgage.

Insummary,thechallengesandlimitaonsfacedbymortgage systems in Nigeria are numerous. High interest rates, lack of awareness, and legal complexies are among the main obstacles hindering the growth and effecveness of the mortgage market Addressing these challenges is crucial for the Nigerian government and other stakeholders to promote widespread access to homeownership and smulate economic growth through the mortgage industry

In order to address the challenges and improve the effecveness of mortgage systems in Nigeria, several potenal soluons can be considered These soluons aim to ensure a more accessible and efficient mortgage market, which will consequently contribute to the growth and developmentoftheindustry.

Firstly, there is a need to enhance the legal and regulatory frameworks that govern mortgage transacons in Nigeria. The current legislaon should be reviewed and updated to provide a clear and conducive environment for mortgage acvies. This includes establishing standardized mortgage documentaon and procedures, ensuring transparency and accountability, and reducing legal complexies that oen hinder the mortgage process.

Secondly, there should be a collaborave effort between the government, financial instuons, and private sector stakeholders in order to increase the availability and affordability of mortgage financing. This can be achieved by creang incenves for financial instuons to lend in the mortgage market, such as offering lower interest rates, extending mortgage terms, and providing guarantees on mortgage loans. Addionally, the government can providetax breaks or subsidies to encourage the construcon of affordable housing, thereby increasing the supply of mortgageableproperes.

Another potenal soluon lies in the development of a comprehensive credit reporng system. This would enable lenders to assess the creditworthiness of potenal borrowers more accurately By accessing reliable credit informaon, lenders can make informed decisions and offer mortgage loans to deserving individuals Furthermore, implemenng measures to encourage financial literacy and educang potenal borrowers about mortgage processes and responsibilies would also contribute to improved mortgagesystems.

Addionally, embracing technological advancements can greatly enhance the efficiency and effecveness of mortgage systems in Nigeria. Introducing online m o r t g a g e p l a o r m s , d i g i t a l documentaon, and electronic payment systems can streamline the enre mortgage process, reducing paperwork and transacon costs Moreover, the ulizaon of data analycs and arficial intelligence can aid in risk assessment, fraud detecon, and monitoring of mortgage porolios, leading to a more secure andreliablemortgagesystem.

As for the future prospects, there is immense potenal for growth in Nigeria's mortgage industry With a rapidly expanding populaon and an increasing urbanizaon trend, the demand for affordable housing is expected to rise. This presents an opportunity for financial instuons and real estate developers to collaborate and create innovave mortgage soluons that cater to the needs of different segmentsofsociety

Furthermore, the ongoing efforts by the government to diversify the economy, improveinfrastructure,andaractforeign investments will also posively impact the mortgage sector in Nigeria As the economy connues to grow and stabilize, there will be a greater willingness among potenal borrowers to invest in real estate through mortgage financing, thereby increasing the overall demand for mortgages.

Inconclusion,whilechallengesexist,there are potenal soluons to overcome them and improve the effecveness of mortgage systems in Nigeria. By refining the legal and regulatory frameworks, increasingtheavailabilityandaffordability of mortgage financing, implemenng credit reporng systems, embracing technology, and promong financial literacy, Nigeria's mortgage industry can thrive. With the right steps and connued commitment to growth, the future prospects for the mortgage sector in Nigeria are promising, contribung to the overall developmentandprosperityofthecountry them access housing finance. The bank also render and facilitate the provision of mortgage and real estate related services.

Platinummortgagebankltd

Another best mortgage bank in Nigeria is the Planum Mortgage Bank Ltd This mortgage instuon was incorporated in 1992 with the Corporate Affairs Commission, and their objecve is to provide savings, loans and homes ownership services, and licensed by the Central BankofNigeriaandtheFederalMortgageBankofNigeria.

It is supported under the CBN Decree 24 of 1991 and FMBN Decree No. 53 of 1989 respecvely to provide Mortgage Banking Services in the country. The bank has it administrave headquarter in Lagos, with branch offices in strategicplacesinNigeria.

Inially known as Planum Home Investment and Mortgage Limited, PMB Limited was recapitalized into a qualityassurance Primary Mortgage Instuon, and they are backed by innovave products, services, latest informaon technologyandessenalprofessionalmanagement.

Safetrustmortgagebank

Formerly known as Safetrust Savings and Loans Limited, Safetrust Mortgage Bank Limited is one of the leading Primary Mortgage Bank (PMB) in Nigeria. The mortgage instute was established on the 2nd of June, 1992 and it commenced operaons in June 1993, of which they have a registeredofficeat18,KeffiStreetIkoyi,Lagos.

The bank was duly licensed by the Central Bank of Nigeria (CBN) and also got accreditaon by Federal Mortgage Bank of Nigeria (FMBN) for the disbursement of the Naonal HousingFund(NHF)loanstocontributors.

Ownership of Safetrust mortgage bank is diversifed with its shares owned by instuonal investors, high net-worth individuals as well as professionals in various industries. With all these, thaey aim at providing first-class mortgage bankingservicestoitsnumberingcustomers.

Trustbondmortgagebank

Trustbond Mortgage Bank Plc was established in 2005, with an administrave headquarter in Lagos. The establishment of this mortgage bank was emerged in the wake of the revisionofcapitalstructureofbanksin2005.

This was on the acquision of Gateway Bank by Interconnental Bank Plc. Moreso, Access Bank aer its acquisionin2011,ithaveInterconnentalHomesasoneof itsubsidiaries.

Trustbond Mortgage Banks has a present paid up capital of over N5billion. The bank is an highly connected financial firm,andtheyoperateinallstatesofthecountry.

FEDERALMORTGAGEBANKOFNIGERIA(FMBN)

Established in 1956, the Federal Mortgage Bank of Nigeria

THEME: BEYOND RHETORICS TO HOMES: MAKING HOUSING HAPPEN

EXHIBIT | NETWORK | MAKE SALES

Exclusive Interview

The Editorial Team of visited the CEO and Group

Abuja Shelter Digest President of SALIS GROUP, in his office in Alhaji Saliu Abubakar Abuja for an interview where we discussed his vision for Salis Ventilated Homes and the contribution of the company in providing affordablehousingforresidentsofAbuja

ASD: Good morning sir and we are happy to meet with you today.

ALH.SALIU:Goodmorningandthankyou.

ASD:Soletusbeginwithareallysimplequeson;whatdoes SALISVENTILATEDPROPERTIESmeantoyou?

ALH. SALIU: Thank you. Salis Venlated Homes is the bedrock upon which the foundaon & acvies of subsidiaries is built upon. It is the foundaon upon which what we have today as Salis Group started. So invariably, Salis Venlated Homes gave birth to Salis Group and it is a real estate company that provides quality and homes and properesforNigerians.

ASD: So Salis Venlated Homes gave birth to Salis Group, but it is also a part of SALIS Group Tell us what areas of business SALIS GROUP is involved in and what is your vision for theGroup?

ALH. SALIU: Salis Group is a holding company for our subsidiaries such as Salis Venlated Homes which you already know is our property and real estate development company, then we have Salis Drive which is a transportaon and logiscs company. We also have Salis Aluminium and Steel Industries Limited where we offer all kinds of alminium and Steel related services. We have also ventured into Oil and Gas, hence our subsidiary Salis Oil and Gas. We also believe in the need to go green, hence we set up Salis Farms. Finally we have the Salis Humanitarian Foundaon, which is a plaorm from where we give back to the society. But like you know, we're sll young and there are sll a lot of things wecanprovide.

ASD: When was Salis Venlated Homes established and what wereyourkeyfocusareasforgrowth?

ALH. SALIU: Salis as a Real Estate company was established in 2010, though it got incorporated in 2017. Regarding our key focus, like I told you for now our focus is on real estate, transportaon, aluminium, oil and gas and farming or agriculture as you can see in all our subsidiaries. While we focusouraenonondeliveringancipatedquality

ASD: Tell us about your management style. How do you divide your me between so many different acvies happening in theGroup?

ALH. SALIU: The truth is, no man is an island. As such you need people to succeed in your dreams. So for me, it is by employing the right staff and the concept of proper delegaon. Each subsidiary has a management structure that oversees acvity and in turn presents mely reports and I have a very competent General Manager and management team that seesthatthecompanysucceeds.

ASD: Great. So back to real estate. How does SALIS Venlated Homes fareagainstindustrycompetors?

ALH. SALIU: First of all, Salis Group is not in compeon with any other real estate company In fact, if we are in a n y c o m p e o n , w e a r e i n compeon with ourself as we are always trying to break our own record each me. So for us, we focus on maintaining standardsandnotcompromisingonquality

ASD: What, in your opinion, are the risks involved in this sector?

ALH. SALIU: The major risk in the sector for me is engaging non-qualified engineers and builders, bad management strategiesandpolicies.Thiscancreateavery bigproblemfor acompany

ASD: What measures do you adopt to reach out to your potenalcustomers?

ALH. SALIU: For us, we adopt every available markeng opon, including Street markeng, digital markeng and referral system. But I strongly believe that if you have good products,customerswillalwayscome.

ASD: What are your key priories over the next three to five years? From a financial model perspecve, affordable housing seems to be an area the company is focused on. Why?

ALH.SALIU: Our key priority for now is on all aspects of Salis Group, no part of Salis Group is being neglected. However, when it comes to housing and real estate, we are interested in providing affordable housing in order to meet the needs of the masses. As you know, there is constant populaon growth as well as migraon from rural areas and states with lesscommercialacviesto major stateslikeAbuja. Assuch, thereisconstantneedforprovisionofaffordablehousing.

ASD: What real estate projects are your company offering at themoment?

ALH. SALIU: Now you are talking (laughs). Anyway, we have a lot of projects ongoing and a number of properes available to the public for sale. We have 2 and 3 bedroom block of flats, 3 and 4 bedroom semi-detached duplexes, 3 and 4 bedroom terrace duplexes, 4 and 5 bedroom detached duplexaswellas2and3bedroomsemi-detachedbungalows. Alltheseproperesareavailableforthepublic.

ASD: Tell us the main selling points of these properes. What isspecialaboutthem?

ALH. SALIU: The special features about these properes are their strategic locaons. Also we have flexible payment plans forpersonswhoareinterestedinbuyingandlikeIsaidbefore, wedonotcompromiseonquality

ASD: The current economic realies makes it almost impossible for people to engage in outright purchase of real estate.Whatisyourcompany'sstanceonmortgage?

ALH. SALIU: As regards that, we understand how things are (Serious). On mortgage, we accept either private and government mortgages be it from Federal Mortgage Bank or what have you. We also offer our clients opons of using any of our payment plans ranging between 24 months to 60 months.

ASD:Wheredoyouseethecompany, fiveyearsfromnow?

ALH. SALIU: Simple, we are taking over Abuja (laughs). Anyways to be serious, our vision is to be the leading real estate value offering company in Africa, not just Nigeria. And bythehelpofGodwewillgetthere.

ASD:Thankyousomuchsirforyourme.

ALH.SALIU:Thankyoutoo.Thankyouforcoming.

Advert Rates