The Federal Government is set to commence work on the establishment of the Nigeria Mortgage Refinance Corporation (NMRC) which is meant to provide funding for the housing and construction sector.
President Goodluck Jonathan gave this assurance in his remarks at his maiden visit to the Eko Atlantic City Project in Lagos on Thursday.
According to him, the NMRC which would be private-sector led, will be established as a PPP arrangement and the partners would include the Federal Government, Nigeria’s local banks and savings & loans institutions, and the multilateral institutions, especially the World Bank which is providing concessional credits of $300million. Subsequently, the NMRC would be able to access the capital markets to raise long-term funds via bond issues.
“We anticipate that the NMRC will provide more liquidity to the housing and construction sectors, and with its operations, would hopefully lead to reduced mortgage and construction finance interest rates”, he added.
He further said that the e-collection platform created by the Federal Mortgage Bank of Nigeria (FMBN) for a more efficient collection and management of the National Housing Fund (NHF) and the broadening of its products to include provision of credit for informal sector workers are other complementary efforts to increase accessibility and affordability to mortgage finance.