MBAN Commends FG on N250bn Mortgage Fund
The National Executive Council (NEC) of the Mortgage Banking Association of Nigeria (MBAN) has commended the Federal Government of Nigeria, alongside the Minister of Finance and Coordinating Minister for the Economy, Olawale Edun, and the Minister of Housing and Urban Development, Ahmed Dangiwa, for endorsing a N250 billion Mortgage and Real Estate Investment Fund (MREIF).
Recently, an announcement was made about the approval of the MREIF, a notable initiative designed to facilitate access to long-term and sustainable mortgage banking and housing finance. This initiative targets primarily affordable housing and aims to provide low-cost mortgages to Nigerians, addressing the significant housing needs of low- and middle-income earners.
The fund is structured to attract private sector and capital market long-term investments from pension fund operators and life insurance companies, which will be combined with low-cost seed funding provided by the government. MBAN encourages all Nigerians to seize this golden opportunity to gain access to affordable mortgages, fulfill their dreams of homeownership, and contribute to reducing the housing gap. Member Mortgage Banks and Mortgage Brokerage Companies within MBAN are prepared to facilitate this process, ensuring that those in need benefit from this transformative fund.
This strategic intervention by the Federal Executive Council (FEC), spearheaded by President Bola Ahmed Tinubu, showcases a firm commitment to tackling the massive housing deficit and rejuvenating the mortgage banking sub-sector in Nigeria. The innovative financing model is anticipated to act as a catalyst, providing mortgages at interest rates close to the single-digit levels, with a repayment tenor reaching up to 20 years. This offers substantial relief to prospective homeowners currently constrained by high-interest rates and affordability challenges.
The initiative aligns with the Federal Government’s strategic objective of significantly reducing Nigeria’s substantial housing deficit, driving economic growth, and generating employment across the mortgage banking sector and the broader real estate and housing construction value chain. This development highlights the vital role of public-private collaboration in addressing pressing national issues, such as affordable housing. MBAN remains dedicated to collaborating with the Federal Government and other stakeholders to achieve sustainable housing solutions for all Nigerians.
The Mortgage Banking Association of Nigeria proudly serves as a bona fide Self-Regulatory Organisation (SRO) and the umbrella body for all mortgage banks duly licensed by the Central Bank of Nigeria (CBN) and mortgage brokerage companies registered by the Association to engage in mortgage-related activities.
