Mortgage Bankers Laud FG for Approving N250bn Real Estate Investment Fund

Emmanuel Addeh in Abuja

The National Executive Council (NEC) of the Mortgage Banking Association of Nigeria (MBAN) yesterday lauded the federal government for the approval of a N250 billion Mortgage and Real Estate Investment Fund (MREIF).
The intervention by the Federal Executive Council (FEC), under the leadership of President Bola Tinubu, it said, demonstrates a firm commitment to addressing the huge housing deficit and revitalising the mortgage banking sub-sector in Nigeria.
A statement signed by the President of the group, Mr. Ebilate Mac-Yoroki and Executive Secretary, Dr Adedeji Ajadi, described the move as a life-saving initiative towards home ownership and rent-to-own financing in Nigeria.
MBAN is the umbrella body of all the mortgage banks licensed by the Central Bank of Nigeria (CBN) and the mortgage brokerage companies registered by the association to engage in mortgage business.
In addition, MBAN thanked the president and the Minister of Finance, Wale Edun for the gesture as well as the Minister of Housing and Urban Development, Ahmed Dangiwa, for the innovations and new ideas he has brought to the mortgage sector.
Besides, the group noted that the Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, has been driving the federal government’s mortgage vision under the current administration.
It explained that the move was a practical  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.
MBAN stated that this is in the main 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.
“The N250 billion MREI-Fund is structured to attract private sector and capital market long-term investments from Pension Funds Operators (PFO) and life insurance companies, which would be blended with low-cost seed funding provided by the government.
“This innovative financing model would act as catalysts in the provision of mortgages at interest rates hovering around the single digit, with repayment tenor of up to 20 years, thereby offering the much-needed relief to prospective home-owners, currently burdened by high interest rates and affordability issues,” the group said.
MBAN therefore encouraged all Nigerians to seize the opportunity to have access to affordable mortgages, fulfil their dreams of home ownership, and contribute to narrowing the housing gap.
Stressing that MBAN was poised to facilitate the process, ensuring that the benefits of the fund get to those who need it the most, the association stated that the 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,” it said.