Access Bank experiences N289 billion in mortgage loans, 2.3% of mortgage portfolio

Entry Holding Plc has reported that its whole mortgage loans are estimated at roughly N289.3 billion within the first quarter of 2025.

This info is contained within the firm’s first-quarter interim report revealed on the Nigerian Change Group (NGX).

A mortgage mortgage is a kind of borrowing used to buy actual property, the place the property itself serves as collateral.

The borrower agrees to repay the mortgage in installments over an agreed interval, with curiosity.

Mortgage loans represent a small portion of business banks’ total mortgage portfolios resulting from a number of elements.

What the Knowledge Signifies

In response to the monetary statements of the bank, it has a complete mortgage portfolio of roughly N12.2 trillion as of March 2025.

This implies that mortgage loans symbolize simply 2.3% of the bank’s whole mortgage portfolio throughout the interval into account.

The loans are categorized into private and company loans, with private loans main with N218 billion. The overall mortgage mortgage was N318 billion as of December 2024.

Nonetheless, the bank estimated an anticipated credit score lack of about N9.1 billion from the loans as of 2024.

Different banks

In 2024, Stanbic IBTC’s mortgage mortgage below the Private and Personal Banking (PPB) grew from N941 million in 2023 to N1.073 billion on the finish of 2024.

Equally, the bank’s retail mortgage rose from N15,184 billion in 2023 to N26,847 billion in 2024.

First Holdco retail mortgage mortgage rose considerably to N264.212 billion in 2024, up from N133.091 billion in 2023.

Mortgage Loans in Nigeria

Within the third quarter of 2024, PMBs whole belongings stood at N1.412 billion, down from N454.669 billion recorded in the identical quarter of 2023. This marks a major decline of 99.6%

Trying on the three months within the third quarter of 2024, September recorded the most important whole asset of N536.971 million, up from N484.774 million in August, with July reporting the bottom at N390.443 million.

Nonetheless, there are additionally liabilities. Major Mortgage Banks have a complete legal responsibility of N1.412 billion as at Q3 2024, up from N1.176 billion recorded in the identical quarter of 2023.

PMB mortgage rose to N269.595 million within the third quarter of 2024, up from N192.274 million in the identical quarter of the earlier 12 months.

The Central Bank of Nigeria’s (CBN) Evaluation of the Efficiency of the Nationwide Housing Fund in Nigeria report reveals a good gender stability within the utilization of the scheme, with 57% of respondents who accessed the Nationwide Housing Fund (NHF) being males and 43% females.

The approval fee reported by Major Mortgage Banks (PMBs) was additionally corroborated by beneficiaries, who reported that 66% of them obtained mortgage approvals, whereas 27% of whole functions had been being processed. The remaining functions (7%) had been rejected.

Moreover, the processing interval for NHF mortgage functions took longer, with 70% of PMBs indicating that it took greater than 12 months to course of a mortgage facility from the NHF.

FMBN Targets 5,000 New Houses Yearly

In August, the Federal Mortgage Bank of Nigeria (FMBN) introduced its goal to ship 5,000 new properties yearly, largely via the Renewed Hope Cities and Estates Programme.

The Minister of Housing and City Improvement, Arc. Ahmed Musa Dangiwa additionally acknowledged that FMBN would disburse 20,000 mortgage loans every year, necessitating faster turnaround instances and improved customer service.

Past these targets, Dangiwa charged FMBN with growing Nationwide Housing Fund (NHF) assortment by increasing the subscription internet to incorporate extra Nigerians.

Specialists’ Response

Specialists within the sector have referred to as for a simplified mortgage course of that may guarantee well timed challenge supply and deal with the rising housing deficit in Nigeria.

The Chief Technique Officer and co-founder of Inexperienced Mortgage, Mr. Noah Ibrahim, identifies excessive rates of interest, restricted entry to long-term funds, and stringent eligibility standards as a few of the challenges of accessing mortgage alternatives in Nigeria.

He famous that the mortgage business has grappled with outdated and disconnected programs, usually requiring mortgage professionals to juggle a number of instruments to handle a single mortgage.

Knowledgeable and enterprise strategist, Mrs. Imelda Olaoye, emphasised the significance of exploring know-how to facilitate simple dwelling possession in Nigeria. She acknowledged that know-how has advanced, and it’s essential to leverage essentially the most wanted instruments to reinforce mortgage processes.