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FMDQ OTC Securities Exchange, an over-the-counter market operator for fixed income securities, has signed a memorandum of understanding with the Nigeria Mortgage Refinance Company (NMRC) to facilitate the environment for sourcing long-term funds via the Nigerian capital market for the development of the real estate sector.

Under the partnership, FMDQ, NMRC and other stakeholders will launch initiatives and campaigns to educate the market on mortgage-related debt instruments – such as mortgage-backed securities, real estate investment trusts, among others.

The MoU, which was signed in Abuja on Wednesday, comes several weeks after the FMDQ and the Nigerian Pension Commission signed a Regulatory Supervision Collaboration agreement to enhance pension fund governance, regulation, and supervision.

Bola Onadele, FMDQ’s Managing Director, said the new partnership is geared towards engendering market confidence and allowing NMRC to effectively connect the Nigerian mortgage industry to the debt capital market.

Onadele said the collaboration will also help to boost a pricing methodology, valuation framework, and index development for mortgage bonds.

In his remarks, Prof. Charles Inyangete, NMRC’s Managing Director, said that the MoU with the FMDQ demonstrates the Nigeria Mortgage Refinance Company’s commitment to deepening the Nigerian debt capital market and it is aimed ultimately at bridging the country’s housing deficit, which is currently estimated at 17 million housing units.