NMRC secures $228m to bridge housing deficit

The Nigeria Mortgage Refinance Company Plc has secured $228m to bridge Nigeria’s housing deficit and promote economic growth and development.

In a statement issued on the official X handle of the company on Thursday, this funding was facilitated through a partnership with United States-based MiDA Advisors and Johannesburg-headquartered Standard Bank Group, with a $200m loan from the US International Development Finance Corporation and 28m from local financial markets.

“To help address the liquidity gap in Nigeria’s mortgage finance market, Nigeria Mortgage Refinance Company Plc partnered with US-headquartered MiDA Advisors and Johannesburg-headquartered Standard Bank Group to co-create a blended finance solution to mobilize long-term financing at scale.

“The transaction will include a $200m loan from the US International Development Finance Corporation and $28m in financing sourced from local financial markets, securing a total of $228m long-term blended financing to NMRC.”

The Managing Director and Chief Executive Officer of NMRC, Kehinde Ogundimu, added that the funding will support efforts to bridge the country’s housing deficit by providing liquidity through on-lending to primary lending institutions, such as commercial banks and mortgage banks, which will refinance or pre-finance eligible mortgage loans.

“This transaction will enhance our efforts to provide affordable long-term housing finance in a manner that will impact the overall sector,” Ogundimu said, adding that the facility demonstrates international trust in NMRC’s capacity to manage long-term investments.

He stated that the financing will be directed towards vulnerable population segments, including low-income earners, women, and the informal sector.

Approximately 20 per cent of the loan will go to informal and low-income borrowers while an estimated 40 per cent will be allocated to women, either as borrowers or co-borrowers.

The Chief Executive Officer of MiDA Advisors, Aymeric Saha, expressed satisfaction with the partnership, stating, “We are very pleased to partner with NMRC and Standard Bank to arrange another transformative housing finance solution that will impact over 6,000 households in Nigeria.”

Additionally, the Chief Executive of Corporate and Investment Banking at Standard Bank Group, Luvuyo Masinda, highlighted the importance of the transaction, saying, “This transaction demonstrates the bank’s commitment to driving Africa’s socio-economic development through sustainable investment on the continent.”

In his remarks, the Chief Executive of Stanbic IBTC Capital, Oladele Sotubo, added, “Stanbic IBTC Capital is delighted to have facilitated this landmark financing aimed at enhancing accessibility and affordability of mortgages in Nigeria.”

In August, The PUNCH reported that the Nigeria Mortgage Refinance Company had restated its commitment to providing interim housing data to aid decision-making aimed at addressing the country’s housing deficit.