…To float MFBs’ mortgage guarantee
From Magnus Eze, Abuja
The Central Bank of Nigeria (CBN), yesterday, said it will soon float a mortgage guarantee and insurance scheme for micro finance banks participating in the Nigeria Housing Finance Programme (NHFP).
Deputy Director, Other Financial Institutions Supervision (OFIS), CBN, and Director, National Housing Finance Programme (NHFP), Adedeji Adesemoye, who disclosed this at a workshop for journalists in Abuja on “Accessing Housing Finance in Nigeria”, said that nine micro finance banks will be participating in the scheme, funded with the $300 million facility from the International Development Association (IDA), an affiliate of World Bank.
According to Adesemoye, “$300 million is the total IDA package and $25 million will be going to capitalise mortgage guarantee and insurance while $15 million will go to the pilot housing micro finance.
“The $10 million balance will be used as the technical assistance in doing all the capacity building programmes for the industry – operators, people in the Ministries of Finance, Power, Works and Housing, CBN, mortgage originators and to set up a communication system, which we are working on now.”
The CBN deputy director added that the NHFP will set up mortgage asset system, train judges to help them understand what to do to support the reform. Daily Sun learnt that CBN will also bear the exchange risk since the fund will be given to the banks in naira.
Speaking at the media launch of “My Own Home – A Public Private Partnership” programme aimed at increasing home ownership in the country through mortgage financing, CBN Governor, Godwin Emefiele, said there were lots of benefits for Nigerians interested in owning homes.
Director, OFIS Department, who represented the CBN boss, Mrs. Tokunbo Martins, urged Nigerians to embrace the mortgage financing opportunities by approaching micro finance and commercial banks for mortgage loans being financed through the Nigeria Mortgage Refinance Company (NMRC).
“If you are seeking the capacity to purchase a home through a mortgage loan or build through a housing micro finance product, the time has come for you. If you work hard and buckle yourself up to learning the opportunities available, you will be entitled to the opportunities to get a feel in the door, access to fund and ultimately make a transition from being a renter to a home owner,” Emefiele stated.