FG Moves To Fund Housing Dev

L-R: Chairman, Nigeria Foods Database Network, Prof. Olaoluwa Akinyele, Representative, Nestle Nigeria Plc, Mr Bola Audu, Dean, Faculty of Public Health, University of Ibadan, Prof. Ademola Ajuwon, at the opening of a three-day workshop for the National Working Group on Harmonisation of Food Composition Database for Nigeria in Ibadan, recently. Photo: NAN

The Federal Government will last Thursday inaugurated Nigeria Mortgage Refinance Company (NMRC) to boost housing development funding in the country.

The NMRC inauguration is aimed at reducing the cost of mortgage lending by making available liquity to fund housing development, as a Federal Government Public-Private Partnership Initiative.

NMRC when inaugurate will reduce the interest rate on mortgage loans by the commercial banks to about 13 per cent from 18 and 22 per cent.

This is made known by the Mortgage Banking Association of Nigerian report and made available to The Tide. NMRC would also reduce the expensive nature of housing finance to enable the middle/low income earners access it.

The mortgage lending order, which is between 18 and 20 per cent has led to the widening of the housing deficit put at 17 million units, in addition to the growing slums in the urban centres.

The initiative will ensure that home owners refinance their mortgage expenses through the opportunity provided by the reduction in the interest rates.

Earlier this year, the federal government made known her resolve to establish the mortgage refinancing company to address the housing challenges in the country.

The federal government said it will provide a soft loan of $300 million from the World Bank’s International Development Association concessionary window.