The Federal Mortgage Bank of Nigeria (FMBN), Shelter Afrique, and Real Estate Developers Association of Nigeria (REDAN) have signed a tripartite Memorandum of Understanding for Shelter Afrique to provide $2 billion construction finance towards housing provision in Nigeria.
During the signing ceremony that took place during the weekend, the Acting Managing Director of Federal Mortgage Bank of Nigeria, Mr. Richard Esin, said 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.
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“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 N5.4 billion 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 program.” He said
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 the 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.
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The Managing Director/Chief Executive, Shelter Afrique’, Mr. James Mugerwa, said the occasion was a turning point for the housing sector in Nigeria.
He expressed delight to be part of “such strategic alliance, which aims to forge an end to end solution that addresses issues within the entire value chain, from supply to demand.”
He also called for commitment and dedication in order to achieve the set objectives.
He said Shelter Afrique would continue to seek similar collaborations with like-minded institutions in the continent to develop the sector.
Others dignitaries at the event were the Honourable Minister of Power, Works and Housing, who was represented by the Special Adviser on Housing, Mr. Abiodun Oki, the President, Trade Union Congress (TUC) Comrade Bobboi Kaigama, a former Managing Director Shelter Afrique, Prince Lufadeju, and Executive members of FMBN, REDAN and Shelter Afrique.