PWC has revealed that if the implementation of the newly passed National Housing Fund (NHF) Act 2019 is fully carried out, banks might be compelled to reduce their mortgage financing to real estate sector.

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The Director, Deals Advisory, PWC, Mrs. Bola Adigun made this revelation. She said the reduction in mortgage financing will be the fallout effect of the new housing law, which stipulates compulsory minimum investment of 10 per cent of banks’ profit before tax in the NHF.

According to the housing law, she said that penalty for non-compliance of up to N100 million was stipulated for corporates and N10million for individuals.

The effect of these on the real estate sector, Adigun noted would lead to an increase in the fund available for mortgage loans as a result of increased in inflow to the housing fund.

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Apart from this, she said Nigerians might experience an increase in the cost of housing as a result of the introduction of 2.5 per cent tax on cement.


The report gathered so far maintained that there had been an outcry from housing stakeholders over the new law as regards extra levy on the price of cement, which has made them seek for a fresh amendment to the law.

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However, the PWC director told the press that as at present, the law was in the public domain. Mrs. Adigun further listed poor access to loan facilities, high cost of building, difficulty in getting property titles, huge urban population, and N20trillion mortgage finance deficit among other challenges of the real estate sector.

Giving an analysis of the situation, she stated that only four per cent of Nigerians over the age of 15 had received a loan from a financial institution in 2017; while 85 per cent of the urban population lived in rented accommodation.

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