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Federal Mortgage Bank signs $2bn pact with REDAN, Shelter Afrique

20 Jan 2017, 02:56 pm
Financial Nigeria
Federal Mortgage Bank signs $2bn pact with REDAN, Shelter Afrique

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- FMBN’s Acting Managing Director said the agreement will help to fund the government’s new housing model – which aims to provide 10,000 housing units in 10 years. 

Federal Mortgage Bank of Nigeria's head office, Abuja

The Federal Mortgage Bank of Nigeria has signed a Memorandum of Understanding with the Real Estate Developers Association of Nigeria (REDAN) and Shelter Afrique to provide $200 million over the next decade to finance housing development in Nigeria.

Speaking during a signing ceremony in Abuja on Thursday, Richard Esin, FMBN’s Acting Managing Director, said the agreement will help to fund the government’s new housing model – which aims to provide 10,000 housing units in 10 years. Esin noted that given Nigeria’s huge housing deficit, the agreement with Shelter Afrique and REDAN was a critical step to closing the gap. He said he expects construction work to also create over 150,000 jobs.

“We agreed that we needed to bring in Shelter Afrique to work in partnership with REDAN to make available some funds over the next ten years by providing REDAN members with the necessary construction finance that is required to drive the national housing model,” Esin said.  “On the part of FMBN, since we have agreed on the housing design, pricing, it will then be our responsibility to give confidence to the understanding by committing to provide the mortgage financing that will offtake the provider of the construction finance that will be required. On that basis, we had the understanding that the Nigerian market will not require anything less than $200million annually over the next ten years.”

In his remarks, James Mugerwa, Shelter Afrique’s CEO, said the signing of the MoU was significant as the housing sector gains increasing prominence in the national development agenda of Nigeria.


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