Dataphyte, leading media research and data analytics organisation has revealed in its maiden Advisory Note that Nigerians typically rely on personal savings to pay for their homes.
According to the report titled ‘Nigerian Post-oil Economy: Going the Housing Consumer Credit Path’ this has contributed to the slow pace at which homes are built, as the size of the mortgage market relative to the size of the economy is significantly small.
According to the report, Mortgage to GDP is approximately 0.6% and mortgages account for less than 1% of total banking assets. Total current housing production is estimated at about 100,000 units per year.
The report analysed that despite growth in the size of mortgage institutions from N54 billion (US$342 million) in 2006, to about N224 billion (US$1.42 billion) in 2011, yet ‘this is still considered inadequate given the huge size of Nigeria’s housing deficit’.
The report focuses on helping Nigeria achieve better economic development and bridge economic gaps inclusive of gaps in the labour sector by tapping into consumer demand led interventions especially in the housing sector.