Policy analysts and economists consider the housing and mortgage sector a key indicator of an economy’s growth, development or underdevelopment. This sector plays a crucial role in meeting Nigerians’ needs by facilitating easy access to loans and promoting financial inclusion.
As important as this sector is to the economy, Nigeria’s mortgage sector has long struggled with inefficiencies, a lack of transparency and complex bureaucratic hurdles that make homeownership an uphill battle for millions of citizens. Despite a housing deficit exceeding 20 million units, mortgage penetration has remained below 1% of GDP, significantly lower than in other emerging markets. The absence of a centralized, verifiable mortgage record system has also resulted in fraudulent property transactions, multiple claims on properties and delays in mortgage approvals, discouraging both local and foreign investment in the sector.
For decades, prospective homeowners have encountered long approval timelines, difficulty in verifying property ownership and inconsistent lending practices from financial institutions. This fragmented system has hindered growth in Nigeria’s real estate and mortgage banking industries, making it difficult for many to access affordable housing finance.
To bridge this gap and modernize the mortgage sector, the Federal Mortgage Bank of Nigeria (FMBN), under the leadership of Managing Director Shehu Usman Osidi, is spearheading the establishment of the National Mortgage Registry (NMR). This initiative is in alignment with the Presidential priorities of President Bola Ahmed Tinubu and the ministerial deliverables of the Arc. Ahmed Musa Dangiwa-led Ministry of Housing and Urban Development.
Currently in the digital application development and testing phase, the NMR is poised to revolutionize the mortgage banking landscape, bringing much-needed transparency, efficiency and accessibility to Nigeria’s housing finance system.
The National Mortgage Registry: A digital game changer
The National Mortgage Registry (NMR) is set to serve as a centralized, digital database that records all mortgage transactions in real-time. This innovative digital repository will enable financial institutions, government agencies and homebuyers to verify property titles, track mortgage statuses and prevent fraudulent transactions.
The goal of the NMR is to streamline mortgage processing, reduce risks for lenders and expand homeownership opportunities for Nigerians across all income levels, particularly those in the informal sector, who have historically been excluded from formal mortgage financing. Through this initiative, FMBN is entrenching a culture of inclusivity in mortgage financing for all Nigerians
Enhanced transparency and accountability
A digital, centralized mortgage registry will ensure that all property transactions are properly recorded and easily accessible, reducing fraud and disputes. This is expected to prevent fraudulent transactions by ensuring each property has a verifiable mortgage record. This will also eliminate multiple claims on a single property, reducing legal disputes and mortgage processing delays, while improving trust among financial institutions, developers and homebuyers, making the mortgage market more attractive to investors.
Faster and more efficient mortgage processing
The current mortgage system is slow and bureaucratic, leading to delays in approvals and disbursements. The NMR will reduce paperwork and automate verification, cutting down approval timelines. It will allow banks and mortgage institutions to access real-time data, leading to improved lending decisions and lower administrative costs for financial institutions, ultimately reducing mortgage interest rates for borrowers.
Lender risk, more mortgage financing
A major challenge for mortgage lenders in Nigeria is the high default rate and a lack of reliable borrower data. The NMR will provide access to comprehensive mortgage data, allowing lenders to better assess borrower risk, leading to lower default rates. It will also improve credit scoring systems, enabling more Nigerians to qualify for mortgages, while encouraging banks and private mortgage firms to expand lending, increasing mortgage accessibility.
Data-driven policy making
To effectively tackle Nigeria’s housing deficit, reliable data is essential. The NMR will provide real-time housing finance data, enabling policymakers to identify gaps in homeownership and mortgage accessibility, implement targeted housing policies to increase affordable homeownership and monitor trends in mortgage lending and property transactions, ensuring a more regulated housing market.
Attract Foreign Direct Investment, private sector participation
A well-structured and transparent mortgage system makes Nigeria’s housing market more attractive to foreign investors and private sector players. The NMR will enhance investor confidence by aligning Nigeria’s mortgage system with international best practices, encourage Public-Private Partnerships (PPPs) in affordable housing projects and facilitate the entry of new mortgage finance providers, increasing competition and innovation.
Mortgage access to the informal sector
Nigeria’s informal sector constitutes over 60% of the workforce, yet many lack access to mortgage financing due to difficulties in proving income stability. The NMR, alongside FMBN’s new mortgage products, aims to develop alternative credit scoring methods for informal workers, create specialized mortgage products tailored to the financial realities of artisans, traders, and SMEs and ensure more Nigerians benefit from the National Housing Fund (NHF) scheme, making homeownership possible for a broader segment of the population.
Groundwork for future technological innovations
By digitizing mortgage records, the NMR is setting the stage for further technological advancements in the housing finance sector, such as integration with blockchain technology for enhanced security in property transactions, AI-driven mortgage processing, enabling automated approvals based on predictive analytics and mobile-accessible mortgage verification, allowing users to check property details instantly.
FMBN’s broader digital transformation agenda
The National Mortgage Registry is part of a larger digital transformation initiative by the FMBN. Other ongoing reforms by the Bank include:
Deployment of a Core Banking Application, which will automate mortgage processing and improve service delivery, introduction of virtual property inspections, reducing the need for physical site visits and collaboration with fintech companies, integrating smart lending solutions into the mortgage system.
Current progress and timeline for implementation
As of March 2025, the NMR is in its final testing phase, with deployment expected later this year. The next steps include:
Finalizing system security and integrating with existing banking and land registry platforms. FMBN is already in talks with the Central Securities Clearing Services (CSCS) on this and the fruits of the collaboration will soon be visible to all. Conducting training programs for financial institutions and real estate developers. Launching a nationwide public awareness campaign to educate Nigerians on how to access and use the registry.
Conclusion
The National Mortgage Registry (NMR) being championed by the Federal Mortgage Bank of Nigeria, Nigeria’s leading mortgage financing institution, is more than just a database. It is a transformational tool that will redefine mortgage banking in Nigeria. By enhancing transparency, improving efficiency and making mortgages more accessible, the NMR is poised to accelerate homeownership, attract investment, and drive economic growth.
With full implementation on the horizon, this initiative will ensure that millions of Nigerians access affordable mortgages and own their dream homes. With FMBN at the driver’s seat of mortgage banking, the future of Nigeria’s housing finance sector has never looked brighter.
Rachel Kogi, a housing analyst, writes from Abuja