The Federal Mortgage Bank of Nigeria (FMBN), Company for Habitat in Africa (Shelter Afrique) and the Real Estate Development Association of Nigeria (REDAN) have signed a $2billion Memorandum of Understanding (MoU) to provide 10,00 housing units across the country over the next ten years.
The Managing Director of FMBN, Richard Esin commented on the deal revealing that the bank had developed a national housing model that will help provide about 1000 houses every year for the next 10 years.
“We agreed that we needed to bring in Shelter Afrique to work in partnership with REDAN to make available some funds over the next ten years by providing REDAN members with the necessary construction finance that is required to drive the national housing model.
“On the part of FMBN, since we have agreed on the housing design, pricing, it will then be our responsibility to give confidence to the understanding by committing to provide the mortgage financing that will offtake the provider of the construction finance that will be required. On that basis, we had the understanding that the Nigerian market will not require anything less than $200 million annually over the next ten years”.
Mr Esin also opined that with if the planned $200 million injected in construction industry materializes, 10,000 housing units will be constructed suggesting that this deal is dependent on funding being available.
Parts of this report originally appeared in Businessday.