Nigeria Infrastructure Fund Approves N1.6bn for Mortgage Refinance Company

The Nigeria Infrastructure Fund, one of the sovereign funds under the Nigeria Sovereign Investment Authority (NSIA) has received board approval to invest N1.6 billion ($9.92 million) in the Nigeria Mortgage Refinance Company Plc (NMRC).
By virtue of the investment, Uche Orji, managing director and chief executive officer of NSIA will join the board of NMRC.
Orji said, “the investment in NMRC is one of the pillars of the investment strategy of the housing and real estate sector, which also include investment in affordable and mass housing and other commercial real estate. This investment will provide significant catalyst expand access to financing for home ownership to Nigerians. We believe that this is one of the fastest growing and profitable segments to the economy and will deliver tangible value to Nigerian people”.
Lagos-based Dunn Loren Merrifield was the transaction adviser and issuing house in the deal.
Meanwhile, President Goodluck Jonathan of Nigeria yesterday called for computerization of land registry in order to boost land administration in the country.
Speaking during the Presidential launch of the Nigerian Mortgage Refinancing Company Plc at the Banquet Hall of the Presidential Villa Abuja, Jonathan said that such computerization of land registry will go a long way to facilitate house construction and sale by private developers.
According to him, it will bridge the funding cost of residential mortgages and promote affordable housing for Nigerians.
Also calling for a reduction of land registration cost, he harped on the need to stream in order to ensure quick completion of foreclosure processes.
He advised state governors to consider delegating land consent in their states to speed up the process of land acquisition.
He said: “The Nigerian Mortgage Refinance Company was established to support our objective towards. The housing sector is a key component of this administration’s transformation agenda. That is why we convened the presidential retreat in May last year.
“And in November, I asked the Coordinating Minister to host a round table on housing finance. The objective was to take a critical look at the sector and recommend ways they could be harnessed to provide shelter for Nigerians and create jobs for our teaming youths.
“The housing sector is known worldwide as an avenue for job creation and economic stability, that is why we are focused on the sector and the concrete action we have taken in alleviating the major constraints to its rapid development.”
He noted that high inflation constitute a major impediment to the creation of sustainable and dynamic market because of its impact on the sector.
He said: “The next major steps we have taken is to create the enabling environment for primary mortgage bank and other financial institution to offer real mortgage facilities to Nigerians at affordable rates.
“The is the mandate we have given the Nigerian Mortgage Refinance Company Plc and without government taking this initiatives as a nation, we cannot get to where we want to go.”
Speaking earlier, the Minister of finance, Ngozi Okonjo Iweala said that Nigeria’s housing deficit stands at 17million units.
According to her, if not addressed, the deficit will continue to increase by at least two million units every year.
The ceremony witnessed the signing of two major agreements between the Ministry of Lands Housing and Urban Development and Shelter Afrique, and a subsidiary agreement between Ministry of Finance and Central Bank of Nigeria and World Bank.

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