Nigerians Increase Home Borrowing as Mortgage Demand Strengthens
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Demand for housing finance increased in Nigeria during the second quarter of 2026, according to the Central Bank of Nigeria. Rising demand for house-purchase loans and mortgages points to growing interest in formal financing despite continued affordability challenges.
Demand for housing-related credit in Nigeria increased during the second quarter of 2026, according to the Central Bank of Nigeria’s latest Credit Conditions Survey. Credit demand for household house purchases rose to 9.6 index points, while demand for mortgage and re-mortgage lending increased to 13.3 index points.
The figures indicate that more households are turning to formal borrowing to finance home purchases, even as high borrowing costs continue to affect affordability. Demand for consumer loans also increased to 11.2 index points, while overall demand for secured lending reached 15.1 points.
For Nigeria’s property developers, stronger mortgage demand could expand the pool of potential buyers and encourage greater focus on housing projects designed for mortgage-financed purchasers rather than relying primarily on cash buyers.
However, increased demand does not necessarily mean housing has become more affordable. Higher lending costs can still make monthly mortgage payments difficult for households, creating a gap between access to credit and actual purchasing power.
The development nevertheless signals growing participation in Nigeria’s formal housing-finance market. If lenders can expand mortgage availability while improving affordability and repayment terms, stronger credit demand could support both homeownership and residential development.
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