The Nigerian Mortgage System Under Threat from Corruption and Mismanagement
The Nigerian Institute of Quantity Surveyors has raised concerns about the state of the country’s mortgage system, highlighting that widespread corruption in the housing and financial sectors is making homeownership increasingly unattainable for many citizens. This issue has prompted calls for urgent policy reforms to address the systemic challenges undermining the sector.
At a press briefing held at the Lagos Chapter of the Nigerian Institute of Quantity Surveyors during its golden jubilee celebrations, the General Secretary, Azeez Ayodabo, emphasized the need for the Federal Government to re-evaluate its mortgage policies. He argued that current policies are not aligned with the economic realities of the population.
Ayodabo stated, “The government should review its policies to make mortgage access more flexible. Thresholds should be adjusted according to income categories. People should be able to access mortgage loans based on what they earn. For instance, the government shouldn’t advertise a three-bedroom maisonette and expect a level six or level seven civil servant to buy it. It’s unrealistic.”
He further suggested that housing schemes should be designed in categories such as bungalows, flats, terraces, and duplexes, allowing citizens to choose what fits their income. This approach, he said, would create a win-win situation for everyone, not just the affluent.
Another key challenge identified by Ayodabo was the lack of information regarding mortgage options. He pointed out that while the Federal Mortgage Bank of Nigeria offers long-term mortgage windows of up to 30 years, depending on the applicant’s age and income, this information is not widely available. Additionally, corruption has infiltrated the mortgage system, with some individuals exploiting government connections to access loans meant for the public.
Ayodabo provided an example of past mismanagement: between 2006 and 2009, developers who received government housing loans were supposed to build and sell three-bedroom bungalows for N7.5m. However, many diverted the funds and failed to deliver the houses, even after subscribers had started paying through mortgage deductions from their salaries. As a result, the government had to take direct control of mortgage applications.
He also highlighted the importance of quantity surveyors (QSs) in ensuring project integrity. “One of the biggest mistakes being made today is that people engage QSs only for part of a project, just to prepare the Bill of Quantities, and then exclude them afterwards. This leads to a lack of cost control and wastage. The QS plays a critical role in ensuring quality and preventing corner-cutting.”
Expanding the Role of Quantity Surveyors
The Chairman of the Lagos Chapter, Rilwan Balogun, stressed the need for deeper engagement of quantity surveyors, especially in infrastructure development. He noted that their expertise is often limited to building projects, while vast opportunities exist in civil engineering, heavy engineering, oil and gas, and other major infrastructure sectors.
Balogun explained, “The call to action is for greater inclusion because by engaging consortiums, government and private clients alike can achieve better value for money, promote transparency, and ensure economic efficiency.” He emphasized that the current government’s Renewed Hope Agenda cannot be realized without the technical and financial discipline that QS consortiums bring.
He cited the controversy surrounding projects like the Lagos–Calabar Coastal Highway as an example of the importance of early QS involvement. “Had consortiums been part of the process from inception, issues around inflated costs and lack of transparency could have been avoided.”
Balogun also addressed the ongoing debate between the Bill of Quantities (BOQ) and the Bill of Mechanical and Electrical (BME). He noted that the globally recognized document is the BOQ, prepared by the quantity surveyor or cost engineer, not the BME, which is only used in Nigeria. A properly prepared BOQ ensures precision and limits cost deviation to about five per cent, while BME documents can lead to massive variations and wastage.
Addressing Building Collapse and Professional Encroachment
On the issue of building collapse, Balogun clarified that the perception that quantity surveyors have no role is misguided. He explained that QSs play a preventive role by detailing material specifications and workmanship standards within the BOQ. However, contractors or clients sometimes circumvent these specifications to cut costs, substituting lower-grade materials or using fewer reinforcements, ultimately compromising structural integrity.
He urged the government to mandate the submission of BOQs as part of building approval processes. “This would allow authorities to assess not only the project’s cost but also the developer’s financial capacity to execute it, thereby reducing incidents of abandoned or substandard constructions.”
The Deputy Chairman, Femi Falusi, added that the advent of technology has introduced new challenges. He noted that many allied professionals now believe they can perform the work of QSs, leading to widespread encroachment on their professional space. “Since QS software is now accessible, some non-QSs use it to prepare bills of quantities and attempt to perform cost estimation roles,” he said.
To address this, Falusi advocated for stronger policy measures, including initiatives like the DLA to influence government policy. “We aim to make it mandatory that all bills of quantities or cost estimates submitted for building approval must be prepared and stamped by a registered quantity surveyor.”
Finally, Falusi acknowledged that technology is here to stay and brings both opportunities and challenges. “That is why, at the chapter level, we continue to encourage our members to upskill, embrace innovation, and adopt digital tools to enhance their professional competence and remain relevant in this evolving industry.”