The Nigerian mortgage market has received a significant financial boost as the Nigeria Mortgage Refinance Company Plc (NMRC) secures $200 million in funding from the United States International Development Finance Corporation (DFC). This injection is part of a broader effort to address liquidity challenges in the country’s mortgage finance sector and improve access to affordable housing.
$228 Million Blended Financing Deal
The $200 million facility is part of a $228 million blended financing transaction arranged by MiDA Advisors and Stanbic IBTC Capital, a subsidiary of Standard Bank Group. This financing initiative is designed to mobilize long-term funding at scale, co-creating solutions to tackle the liquidity gap in Nigeria’s mortgage market.
According to Kehinde Ogundimu, Chief Executive of NMRC, the partnership with DFC is a critical step in supporting Nigeria’s efforts to reduce its housing deficit and promote equitable economic growth. The total package includes a $200 million loan from DFC and an additional $28 million sourced from local financial markets, making it a comprehensive solution to fund affordable housing.
On-Lending to Primary Lending Institutions
The facility will be disbursed through on-lending to primary lending institutions, such as commercial banks and primary mortgage banks. These institutions will use the funds to refinance or pre-finance mortgage loans for qualifying borrowers across Nigeria. This system aims to make homeownership more accessible to Nigerians, particularly those in the informal sector and low-income earners.
Targeting Nigeria’s Vulnerable Population
With 63 percent of Nigerians classified as multi-dimensionally poor, according to the National Bureau of Statistics (NBS), this funding is expected to benefit vulnerable populations who traditionally face difficulties in accessing credit. A significant portion of the loan—approximately 20 percent—will be allocated to informal sector workers and low-income borrowers. Moreover, 40 percent of the refinanced or pre-financed mortgages will be directed to women borrowers or co-borrowers, helping to bridge the gender gap in homeownership.
Driving Economic Growth and Development
This strategic funding initiative is expected to make a substantial impact on Nigeria’s housing market, reducing the housing deficit while promoting more inclusive economic development. The partnership between NMRC, DFC, and other financial players marks a critical step toward ensuring more Nigerians can access affordable mortgage financing, ultimately driving both housing and economic growth.
Source: Business Day