U.S.-backed NMRC lands $200m for mortgage loans for Nigeria’s housing deficit

Cynthia Ezekwe

The Nigeria Mortgage Refinance Company (NMRC) has entered into partnership with the U.S. International Development Finance Corporation (IDFC), resulting in a $200 million fund for affordable mortgage financing as part of a $228 million blended financing transaction orchestrated by MiDA Advisors and Stanbic IBTC Capital, a member of Standard Bank Group, aimed at tackling the pressing issue of liquidity shortage in Nigeria’s mortgage finance market.

The $228 million blended financing facility obtained by the Nigeria Mortgage Refinance Company through its partnership with the U.S. International Development Finance Corporation (DFC) is expected to be channelled to primary lending institutions, including commercial banks and primary mortgage banks, for on-lending to eligible mortgage borrowers across Nigeria.

The mechanism, Business a.m learnt, will enable the facility to reach a wider range of borrowers, facilitating the expansion of the mortgage market and supporting the government’s plan to bridge the housing gap in the country.

The secured financing facility is set to improve access to credit facilities for the nation’s vulnerable population segments, including the large informal sector, low-income earners, and women, who face significant challenges in their quest to own a home.

In line with its commitment to supporting vulnerable segments of the population, the Nigeria Mortgage Refinance Company sait it will allocate 20 percent of its $228 million financing facility to informal and low-income borrowers. 

Furthermore, the company will prioritise gender equity in its lending, with 40 percent of the mortgages to be refinanced or pre-financed targeted at women borrowers or co-borrowers

Kehinde Ogundimu, managing director and chief executive officer of the Nigeria Mortgage Refinance Company (NMRC), expressed gratitude to the United States International Development Finance Corporation for its approval of the $228 million loan facility.

“This transaction will certainly enhance our efforts to provide affordable long-term housing finance in a manner that will impact the overall sector. It shows that DFC and, indeed, other local and international financing institutions have a lot of trust in our capacity to manage long-term facilities that will make a tangible impact on the lives of Nigerians.

“The keen focus on low-income earners, the informal sector, and women is indicative of the direction of our efforts. As an institution, we are committed to driving equitable access to housing credit facilities thus enabling vulnerable Nigerians to achieve their homeownership dreams,” he said.

Luvuyo Masinda, chief executive of Corporate and Investment Banking at Standard Bank Group, which acted as one of the lead arrangers of the blended financing facility,affirmed the bank’s dedication to driving Africa’s socio-economic development through the mobilisation of sustainable investment on the continent.

“We understand the needs and challenges of Africa’s people and continue to deliver innovative solutions to address these. This is truly an incredible transaction with a positive impact to Nigeria and the continent,” Masinda stated.

Also commenting on the transaction, Oladele Sotubo, chief executive of Stanbic IBTC Capital Limited, the wholly owned investment banking subsidiary of Stanbic IBTC Holdings PLC, remarked that Stanbic IBTC Capital is delighted to have worked alongside MiDA Advisors to facilitate the landmark financing aimed towards enhancing accessibility and affordability of mortgages in Nigeria. 

“The objectives of the transaction are well within the Standard Bank Group’s purpose in driving Africa’s growth, and we are extremely proud to be party to the transaction,” Sotubo added.