The Lagos State Government, the Nigerian Mortgage Refinance Company and a consortium of developers have signed a Memorandum of Understanding to build and deliver 20,000 housing units in the state.
The parties said the agreement was signed in line with the Lagos Affordable Public Housing initiative of Governor Akinwunmi Ambode for the construction of 20,000 housing units through joint ventures with the private sector.
The Commissioner for Housing, Mr. Gbolahan Lawal, stated that his ministry and the developers had initiated an arrangement with primary mortgage institutions and the NMRC to facilitate the creation of mortgages for subscribers under the LAPH initiative.
He said the arrangement was in view of the current economic situation in the country with the accompanying low purchasing power.
The commissioner stated, “The state government is a subscriber to the NMRC by virtue of the registration of our Lagos Building Investment Corporation with the company and is therefore qualified to benefit from the mortgage loan refinancing roles of the NMRC.
“The refinancing agreement will assist the supply side as well as the demand side of the value chain as it will set in motion a revolving pool of funds for mortgage origination, which will assist developers and provide them access to construction finance and help scale up housing delivery. The LAPH homeownership initiative and the collaboration is an opportunity for the state and its residents to leverage on the benefits available under the NMRC initiative.”
He said the agreement would make homeownership easy in line with the vision of the current administration towards making housing readily available and accessible for residents.
The Chairman, Brain and Hammers, Mr. Adebola Sheidu, whose firm is one of the consortium of developers, said the agreement was a major breakthrough in the housing sector.
According to him, with the NMRC’s involvement, mortgages will be more accessible to more Nigerians and developers will be able to build more houses.
The Managing Director, NMRC, Prof. Charles Inyangete, said the agreement would lead to a housing revolution in Lagos State.