In the face of Nigeria’s deepening housing crisis, Access Bank — the country’s largest lender by assets — is drawing criticism for its minimal commitment to mortgage financing. The bank’s Q1 2025 financial report reveals that only N289.3 billion of its N12.2 trillion loan portfolio has been allocated to mortgage lending, representing just 2.3%.
This figure reflects a decline from N318 billion in December 2024 and starkly contrasts with Nigeria’s urgent demand for accessible home financing. The drop suggests a backward slide, raising concerns about the bank’s dedication to supporting homeownership in a nation grappling with a massive housing deficit.
Despite policy efforts by the Central Bank of Nigeria and housing authorities to boost mortgage access and housing development, Access Bank appears to be lagging. Experts are questioning whether the banking giant is neglecting its social responsibility — particularly when peer institutions are making strides in the same area.
Falling Behind Industry Peers
Access Bank’s underwhelming performance becomes even more evident when compared with institutions like First Holdco, which nearly doubled its mortgage portfolio from N133 billion in 2023 to over N264 billion in 2024. Despite Access Bank’s significantly larger asset base, its contribution to housing finance has been less than encouraging.
Even more concerning are the bank’s reported N9.1 billion in expected credit losses from mortgage loans — a red flag that may point to issues in loan quality, borrower support, or risk evaluation.
A Missed Opportunity in a Broken System
Nigeria’s mortgage sector is already burdened by high interest rates, slow loan approvals, and strict eligibility criteria. The Federal Mortgage Bank of Nigeria has set ambitious targets of 20,000 mortgage loans and 5,000 new homes annually. Yet, Access Bank’s limited participation raises serious doubts about its alignment with national development goals.
As housing demand surges due to urbanization and population growth, critics argue that Access Bank’s mortgage strategy reflects a broader trend of neglect and inertia within the sector.
Calls for Reform and Accountability
Industry observers continue to advocate for the adoption of financial technology, streamlined lending processes, and better access to long-term funding in the mortgage space. However, these appeals appear to be falling on deaf ears at Access Bank, where commercial lending continues to dominate priorities.
As Nigeria seeks solutions to one of its most pressing social challenges, Access Bank’s mortgage lending record offers a cautionary tale — one of missed opportunities and misplaced priorities in a time of national need.
0 Comments