By Cross Udo, Abuja
The Mortgage Banking Association of Nigeria (MBAN) has expressed gratitude to the Federal Government and the Federal Ministry of Finance for approving a N250bn Mortgage and Real Estate Investment Fund (MREIF).
MBAN, through its National Executive Council, said that the initiative, which it described as an innovative financing model, would act as catalysts in the provision of mortgages at interest rates hovering around the single digit, with repayment tenors up to 20 years. Thus, prospective homeowners burdened by high interest rates and affordability issues would receive much-needed relief.
The association said this yesterday in a statement by Adedeji Ajadi, Executive Secretary/CEO, and Mr Ebilate Mac-Yoroki, President.
They said the initiative would tackle Nigeria’s significant housing deficit and stimulate economic growth and employment creation in the mortgage banking and real estate/housing construction value chains.
According to the statement, “This strategic intervention by the Federal Executive Council (FEC), under the leadership of His Excellency, President Bola Ahmed Tinubu, demonstrates a firm commitment to addressing the huge housing deficit and revitalizing the Mortgage Banking sub-sector in Nigeria.
“Mortgage Banking Association of Nigeria is the bonafide self-regulatory organization (SRO) and umbrella body for all the mortgage banks duly licensed by the Central Bank of Nigeria (CBN) and the mortgage brokerage companies registered by the association to engage in mortgage business in the mortgage banking sub-sector.
“MBAN hereby expresses its appreciation to His Excellency, Commander in Chief of the Armed Forces of the Federal Republic of Nigeria, President Bola Ahmed Tinubu, for the life-saving initiative to promote home ownership and rent-to-own finance in Nigeria.
“Also, the MDAN wishes to take this opportunity to express its gratitude and appreciation to the Honourable Minister of Housing and Urban Development, Arch. Ahmed Musa Dangiwa, for all the innovations and new ideas he has brought to the mortgage sector.
“The Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, who has driven the federal government’s mortgage vision under President Tinubu’s leadership, also has our unreserved commendation and appreciation for his visionary leadership of the sector
“The fund, as disclosed by the Honorable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, on November 14, 2024, is a practical and stoic demonstration of sovereign political will at the highest level of government towards providing access to long-term and sustainable mortgage banking/housing finance for affordable housing in the central area of low-cost mortgages to Nigerians, thereby addressing the housing needs of low- and middle-income earners.
“The initiative aligns with the federal government’s objective to tackle the significant housing deficit in Nigeria while stimulating economic growth and employment creation in the mortgage banking and real estate/housing construction value-chain.”
It said the N250bn MREI Fund is structured to attract private sector and capital market long-term investments from pension fund operators, PFOs, and life insurance companies. These investments would be blended with low-cost seed funding provided by the government.
The statement further said, “This innovative financing model would act as catalysts in the provision of mortgages at interest rates hovering around the single digit, with repayment tenor up to 20 years, thereby offering much-needed relief to prospective homeowners, currently burdened by high interest rates and affordability issues.
“MBAN encourages all Nigerians to seize this golden opportunity to access affordable mortgages, fulfill their dreams of home ownership, and contribute to narrowing the housing gap.
“Please be assured that the member mortgage banks and mortgage brokerage companies of MBAN are poised to facilitate this process, ensuring that the benefits of this transformative fund drill down to each of those who need it the most.
“This development underscores the importance of public-private collaboration in addressing critical national challenges, such as affordable housing. MBAN remains committed to working closely with the federal government and other stakeholders to achieve sustainable housing solutions for Nigerians.
“For further information on access to this fund, Nigerians are advised to contact licensed mortgage banks and registered mortgage brokerage companies under the umbrella of MBAN. Together, we will build a nation where affordable home ownership and tent-to-own finance become a reality for all Nigerians.”
