The Federal Mortgage Bank of Nigeria (FMBN), Shelter Afrique, and Real Estate Developers Association of Nigeria (REDAN) have signed a Memorandum of Understanding for Shelter Afrique to provide $2 billion construction finance for housing provision in Nigeria.
The Acting Managing Director of Federal Mortgage Bank of Nigeria, Mr. Richard Esin, during the signing ceremony at the weekend said that the collaboration was a proactive step taken in recognition of the opportunities that would arise from the launch of a National Housing Model.
“The objective of the strategic collaboration is to harness each party’s competencies and strengths in the areas of training, research, advocacy, and mobilization of financial resources, both international & domestic, in support of projects of mutual interest to ensure the successful delivery of affordable housing in Nigeria and involves a commitment by Shelter Afrique to avail the sector $2 billion construction finance towards housing provision in Nigeria,” he said.
“The development is coming at an auspicious time in the life of the bank when it has moved from a deficit position to operating surplus in 2016, creating 736 individual mortgages up to the tune of N5.4billion within the period.
“We are optimistic that the partnership would result in the growth of the sector and lead to an increase in the contribution of the sector to the nation’s Gross Domestic Product. He called for the commitment of all parties to the successful execution of the programme.”
The President of the Real Estate Developers Association of Nigeria (REDAN), Rev. Ugo Chime commended all the parties involved, saying, the cooperation was a “strategic attempt to create a seamless interface from construction finance to mortgage finance and all in-between, towards easing the challenges faced in the sector.”
He called for immediate recapitalization of the Federal Mortgage Bank of Nigeria (FMBN) by the Federal Government, to ensure that it has the capacity to finance mortgages.
He said the mortgage sector was expected to rise by annual $200 million construction finance injection.