Operators have disclosed that nearly 70 per cent of properties in Nigeria are untitled, preventing many homeowners from accessing mortgage loans and limiting investment in the real estate market.
In an interview with The PUNCH, the Executive Secretary of the Association of Housing Corporations of Nigeria, Toye Eniola, said that most land and properties in the nation are not bankable because they have no titles as a result of little reform in the sector over the years.
He said, “In view of the current rising housing deficit, land reforms are inevitable, particularly in title documentation procedures and costing so as to make land more easily accessible and simple to promote the mortgage market. 70 per cent of properties in the country are without titles, which make them ineligible for mortgage transactions because they are not bankable.
“A reform that incorporates seamless procedures with digital central title storage that can be easily verified online will help to accelerate housing investment and development and expand the mortgage market, which will, invariably, reduce housing deficits in the country. The regulatory process, however, should still reside with the government for control purposes.”
In a similar vein, the Chief Executive Secretary of the Mortgage Banking Association of Nigeria, Dr Adedeji Ajadi, stated that mortgage institutions cannot provide financing for properties without valid and verifiable titles.
He said, “There is an urgent need for reforms in land titling in Nigeria. Mortgage institutions cannot provide financing for properties without valid and verifiable titles. This challenge not only hampers mortgage creation and housing delivery but also stifles the growth of the secondary mortgage market.
“Addressing land title reforms is critical to unlocking sustainable investment in the housing sector and ensuring the effectiveness of mortgage-backed transactions. The urgency of these reforms cannot be overemphasised.”
Corroborating the above, the Executive Director of Shelter Origins, Ezekiel Ojo, opined, “That is the true position; they are not bankable. Property without a title cannot attract a mortgage.”
In 2024, operators in the built environment estimated that Nigeria loses about ₦36 tn annually due to untitled lands.
The cost of land registration varies depending on the location. However, the average registration fee for a plot of land in Nigeria, depending on the state and local government, was pegged at N1m by operators, which was used as the basis for this estimation.
In an exclusive interview with our correspondent, the financial secretary of the Nigerian Institution of Estate Surveyors and Valuers, Ayodele Odeleye, stated that out of the 40 million households nationwide, only about 10 per cent have formal property titles, meaning they are legally recognised by the government and subject to taxes and other regulatory fees.
He said, “The total number of households in Nigeria is about 40 million, according to the Nigerian Bureau of Statistics and Centre for Affordable Housing Finance in Africa. In addition, the percentage of households with formal property titles is about 10 per cent, as noted by the housing minister. Hence, households without formal property titles (informal housing market) equal 90 per cent of 40 million, which is 36 million households.
“On the revenue lost per household, this depends on what the government would typically earn from a household with a formal property title (e.g., property taxes, registration fees, income tax, building permits, licences, etc.). Let’s assume the government could collect an average of N1m annually per household with formal property titles.
“The total potential revenue from informal households is estimated by multiplying 36 million households by N1m per household, which amounts to N36tn annually. Thus, the government potentially loses about N36 tn annually in revenue due to the informal housing market. This is a rough estimate, and the actual figure could vary based on specific taxes, fees, and charges applicable in different regions of the country.”
