Nigeria to get World Bank $300 million for mortgage infrastructure

Ngozi Okonjo Iweala24 April 2013, Washington — The World Bank is to partner Nigeria to develop a sound mortgage financing structure that would deliver affordable houses to Nigerians. The multilateral institution is to provide financial access and liquidity to the tune of $300 million to kick start the project.

Banks in the country are to partner government to develop a mortgage vehicle that will manage housing development in Nigeria. Government will, however, have a small share. This fact was disclosed by the Minister of Finance and Coordinating Minster of the Economy Dr. Ngozi Okonjo Iweala.

Making the disclosure at a briefing yesterday with the CBN Governor Sanusi Lamido Sanusi, the Minister said the facility from the World Bank would attract a zero per cent interest, 0.7 per cent commitment charge, 10 years of grace and 40 years repayment period.

She said Nigeria currently has a huge housing deficit of 17 million which is growing by two million per year.

The minister said the Federal Government has asked for States that will volunteer to remove the constraint on land acquisition, certificate of accupancy and others to serve as the pilot project.

According to her, six states, Lagos, FCT, Bauchi and Anambra states have volunteered to pioneer the initiative.

She disclosed that the guidelines for setting up the structure of mortgage financing in the country is being worked out and by the end of the year, the institution will be in place and will begin operation early 2014.

The minister said the Federal Government will float a Eurobond this year, adding that it will put time table of the Eurobond together and do a road show in June in the relevant market in London, New York etc.

The Ministry of Finance will undertake road shows in Europe and America to attract investors to subscribe to the bond.

Okonjo-Iweala said: “This will be our second Eurobond on offer. The yields on Nigeria bonds are good. This is an auspicious time for us to go and launch the Eurobond and so we are continuing.
*Omoh Gabriel, Vanguard

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  • Unfortunately, the Nigerian government at all levels – federal, state and local lack a coherent housing policy that seeks to impact the well being of the people. Perhaps, except successive Lagos state governments which have benefited from the housing policy put in place by the government of Alhaji Lateef Jakande, there is no other commendable effort in this direction. Essentially, the World bank facility for mortgage infrastructure may not accomplish much.