Fidelity bank banner UBA banner
Nigeria negotiates US$300 million financing agreement for new housing scheme

By News Express on 16/01/2014

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 3,058

Nigeria has successfully negotiated a US$300 million financing agreement with the International Development Association (IDA) for the new housing scheme targeted at helping the middle and at the lower end of the income scale to own their own houses.

Coordinating Minister for the Economy/Minister of Finance, Dr. Ngozi Okonjo-Iweala, disclosed this today while speaking at the launch of the Nigeria Mortgage Refinance Company (NMRC). The launch was performed by President Goodluck Jonathan at the Banquet Hall, State House, Abuja.

Okonjo-Iweala disclosed that the funding agreement with the IDA is “on very concessionary terms, zero interest rate, 40-year tenor with 10 years of grace.” According to her, “US$250 million will be disbursed in installments to NMRC as Tier 2 Capital based on performance indicators; US$25 million will be for the establishment of a Mortgage Guarantee Facility for lower income borrowers; and US$25 million will support the development and piloting of Housing Finance Microfinance Products including support to FMBN to restructure and strengthen its programme of mass housing.”

The minister made it clear that for the initiative to be successful, the federal government has to work with states. “Many of the states have initiated strong housing programme themselves but the advent of the NMRC will enable them to scale up their efforts. To this end, we are grateful to the Governors of Abia, Anambra, Bauchi, Bayelsa, Delta, Ekiti, Gombe, Kano, Kwara, Kaduna, Lagos, Edo, Enugu, Nassarawa, Ondo, Rivers and Ogun states as well as Minister FCT for their collaboration,” she said.

Okonjo-Iweala added: “The State Governors have committed to supporting the NMRC initiative and to collaborating with us towards creating the enabling environment for mortgage origination to be refinanced by NMRC, in key areas under their jurisdiction; (i) Property Registration; (ii) Enforcement of foreclosure; (iii) Access to Serviced Land, Laws or Arbitration initiatives etc.

Let me now turn to the issue of interest rates. With the full operation of the NMRC, a substantial building block will be put in place for interest rates to come down from the current spread of 20% – 23% to the low double digits or highly single digits provided macroeconomic stability continues, in concert with the responsible behavior of other agencies of government and the private sector. Macroeconomic policy and fiscal discipline must be maintained to achieve low inflation rates and enable refinancing Efficiencies in the financial institutions. Land registries and courts have to provide quick and easy access to certificates of occupancy and fair justice.”

She also disclosed that “the federal government is working in partnership with private developers and International Finance Institutions on mass housing rent-to-own schemes which will enable lower income Nigerians to ultimately own the houses they live in after 15-20 years of paying rents. Rent-to-own, also known as rental-purchase, is a type of legally documented transaction under which a house is leased in exchange for an annual rent, with the option to own house at some point during the agreement.”

She disclosed that the NMRC will need three to four months to start operation, float bonds and begin to enhance high access to PMIs and others. Her assurance: “Starting end of June, you can approach your PMI to assist with a mortgage. We have hotlines available on the website –”

•Photo shows Okonjo-Iweala.

Source News Express

Posted 17/01/2014 02:33:54 AM


Share on facebook Yahoo mail icon Gmail icon Share on Google+




You may also like...
Buhari rejects Nigerian Peace Corps Bill

Delta govt. will provide enabling environment for investments...

2 policemen killed in bid to foil kidnap...

Release is not enough: Wives of detained journalists...

Zamfara Massacre: HURIWA blames failure of security

Prosecute Reigners’ Bible Church over building collapse, activists...

U-N-B-E-L-I-E-V-A-B-L-E!: Saudi Arabia REJECTS UN Security Council seat...

South-East to benefit from future rail projects: Transportation...

Bauchi workforce over bloated, says Civil Service Commission...

Obama Announces Presidential Delegation to Sierra Leone

Senate resumes today, set for Buhari’s ministerial list...

Abia PDP advertisement unintentionally campaigns for APGA candidate...


Latest News BREAKING NEWS: IPOB Leader Nnamdi Kanu resurfaces How we plan to win 2019 election — Buhari, Atiku NIA places Nigerian agencies on red alert over ‘Chinese drugs containing human flesh’ Trump critic calls for military coup in U.S. Buhari’s in-law, Amosun, Abe lose out as APC submits candidates’ names 2019: Bayelsa group accuses royal father, others of working against PDP •Chides Ex-President Jonathan Ekiti Muslims angry with Governor Fayemi 2019: Parties rush to beat INEC deadline for submission of candidates list Lagos Assembly orders immediate return of PSP, disowns Visionscape NNPC washes hands off Abia pipeline explosion Mentally deranged woman caught with N200,000 PDP demands immediate reconstitution of Osun Governorship Election Tribunal


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (407,534 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (382,832 views) Shameless Genevieve Nnaji exposes breasts in public (315,177 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (257,812 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (237,755 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (224,542 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (204,336 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (185,801 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (170,511 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (166,032 views) Lagos plane crash: Journalist releases victims’ names (161,674 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (149,436 views)


Categories Advertorials (3) African Press Organisation (81) Art & Literature (67) Business & Economy (3,693) Business Verdict (52) Columnists (948) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (559) Features (660) Global Business Monitor (304) International (2,545) Interview (165) Live Commentary (28) Love Matters (145) News (39,737) Opinion (1,124) Pidgin (13) Politics (7,292) Religion (881) Sports (1,733) Stock Watch (35) AMA & Al Jazeera Global Update


NLNG Prize for Literature 2018

Zenith Zero Balance

CBN banner

Firstmobile banner





LIBYA vs NIGERIA 2-3 Goals Highlights


APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera