The National Executive Council (NEC) of the Mortgage Banking Association of Nigeria (MBAN), has commended the Federal Government, the Minister of Finance and Coordinating Minister for the Economy, Olawale Edun and the Minister of Housing and Urban Development, Ahmed Dangiwa for the approval of a N250bn Mortgage and Real Estate Investment Fund (MREIF).
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. Its primary focus is providing low-cost mortgages to Nigerians, thereby addressing the pressing housing needs of low- and middle-income earners.
A statement jointly signed by the President and Executive Secretary/ CEO of MBAN Ebliate MAC-Yoroki and Dr Adedeji Ajadi respectively, indicates that the N250bn MREIF Fund 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,” according to the statement.
It noted that the strategic intervention by the Federal Executive Council (FEC), under the leadership of President Bola Tinubu, demonstrates a firm commitment to addressing the huge housing deficit and revitalizing the Mortgage Banking Sub-Sector in Nigeria.
According to the statement, 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.