Mortgage bankers under the auspices of the Mortgage Banking Association of Nigeria (MBAN) have said the N250 billion Mortgage and Real Estate Investment Fund (MREIF) would improve access to sustainable finance and boost housing development.
The federal government is championing the N250 billion fund, under the approval of the Minister of Finance and Coordinating Minister for the Economy, Mr. Olawale Edun and Minister of Housing and Urban Development, Ahmed Dangiwa.
Edun had last week announced the approval of MREIF, an initiative aimed at enhancing access to long-term and sustainable mortgage banking and housing finance, particularly for affordable housing.
MREIF’s primary focus is providing low-cost mortgages to Nigerians, thereby addressing the pressing housing needs of low- and middle-income earners.
In a statement jointly signed by Ebliate MAC-Yoroki and Dr Adedeji Ajadi, President and Executive Secretary and Chief Executive Officer of MBAN respectively, mortgage bankers commended the government for the funding initiative.
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They noted that the N250 billion MREIF is structured to attract private sector and capital market long-term investments from pension funds operators and life insurance companies which would be blended with low-cost seed funding provided by the government.
“MBAN, therefore, encourages all Nigerians to seize this golden opportunity to have access to affordable mortgages, fulfill their dreams of homeownership, and contribute to narrowing the housing gap. The MBAN member mortgage banks and mortgage brokerage companies are poised to facilitate this process, ensuring that the benefits of this transformative Fund reach those who need it most.
“For further information on access to this fund, Nigerians are advised to contact licensed mortgage banks and registered mortgage brokerage companies under the umbrella of MBAN. Together, we would build a nation where affordable homeownership and rent-to-own finance are a reality for all Nigerians,” MBAN stated.
The association noted that the strategic intervention by the President Bola Tinubu-led Federal Executive Council (FEC) demonstrated a firm commitment to addressing the huge housing deficit and revitalising the mortgage banking sub-sector in Nigeria.
According to MBAN, this innovative financing model would act as a catalyst in the provision of mortgages at interest rates hovering around the single digit, with repayment Tenor up to 20 years, thereby offering much-needed relief to prospective homeowners currently burdened by high interest rates and affordability issues.
“The initiative also aligns seamlessly with the federal government’s strategic objective of reducing Nigeria’s substantial housing deficit. It is expected to catalyze economic growth and drive job creation across the mortgage banking sector and the broader real estate and housing construction value chain.
“This development underscores the importance of public-private collaboration in addressing critical national challenges, such as affordable housing. MBAN remains committed to working closely with the federal government and other stakeholders to achieve sustainable housing solutions for Nigerians,” MBAN stated.
MBAN is the self-regulatory organization (SRO) and 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 businesses.