Why Nigeria Needs a Functional Mortgage System for Civil ServantsESV Nkeiru Arum, FCA, FICA ANIVS,

In a country where homeownership is often seen as a lifetime achievement, Nigeria’s mortgage system remains disappointingly out of reach for the average citizen especially civil servants. Despite their vital role in running the machinery of government, many public workers retire without a home to their name. This reality is both alarming and avoidable.

The dream of owning a home should not be an exclusive preserve of the wealthy. Civil servants – teachers, nurses, administrative officers, and security personnel deserve the dignity of homeownership. However, the current structure of Nigeria’s housing finance system has made it nearly impossible for them to access mortgage loans due to high interest rates, cumbersome procedures, poor awareness, and lack of institutional support.

Today, interest rates on mortgage loans in Nigeria hover between 18% and 25%, depending on the lender. This is far above what a Level 10 civil servant earning less than N150, 000 monthly can afford. Even when some are willing to bear the burden, the requirement for huge equity contributions, often 30% of the property value upfront makes the entire process seemingly unattainable.

By contrast, countries with functional mortgage systems make homeownership accessible through low-interest, long-tenure mortgage loans. In the United States, for instance, people can access 15- to 30-year mortgages at single-digit interest rates, sometimes as low as 3% to 5%. Even in South Africa, Nigeria’s peer in the region, the mortgage system is robust enough to support both public and private sector workers.

The Nigerian government, through the Federal Mortgage Bank of Nigeria (FMBN) and the National Housing Fund (NHF), has been at the forefront of addressing the housing need of civil servants. Though in a slow pace, the strategic efforts are being felt by the Nigerian civil servant, and it is hoped that this will continue to yield positive changes under the Renewed Hope Initiative of President Bola Tinubu led government.

A well-functioning mortgage system tailored for civil servants would not only address housing deficits but also boost national productivity. A worker who owns a home is more likely to be committed, stable, and mentally focused. Moreover, expanding mortgage access will stimulate the real estate sector, generate jobs, and drive economic growth.

To achieve this, government must reform the existing housing finance system. Interest rates must be subsidized for civil servants, loan tenures extended to 20–30 years, and equity contributions significantly reduced. Partnerships between public agencies and credible private developers should be encouraged to deliver affordable housing projects backed by accessible mortgage plans.

Furthermore, digitizing mortgage applications, increasing awareness about eligibility, and ensuring timely processing are all key to rebuilding trust in the system. No civil servant who faithfully serves the country for 30–35 years should retire into homelessness.

In the end, housing is more than shelter it is security, dignity, and stability. For Nigeria to build a truly inclusive and productive nation, it must prioritize a mortgage system that serves the people who serve it.

ESV Nkeiru Arum, a multidisciplinary professional sent in this opinion article from Abuja Nigeria.