In a bid to provide affordable mortgages, the Nigeria Mortgage Refinance Company (NMRC) has signed an agreement with the Kaduna State Government and Federal Housing Authority Mortgage Bank.
The agreement, which was signed at the Kaduna State Government House, is part of the schemes put in place by the state government known as the Mortgage Blended Initiative. It is aimed at mortgage creation and refinancing at a single-digit interest rate with an initial investment of N3 billion.
According to the Governor of Kaduna State, Mallam Nasir El-Rufai, the state had enacted the landlord and tenant law that encourages, empowers and protects property owners and investors, as it had also passed into law the mortgage and foreclosure law.
El-Rufai also commended the participating institutions for agreeing to work with the state in establishing the blended rate programme.
Also speaking on the joint agreement, the Managing Director of the NMRC, Kehinde Ogundimu, stated that Kaduna State was at the forefront of housing finance transformation and was a model state in terms of ease of doing business and mortgage friendliness.
He said the creation of the blended financing initiative represented the NMRC’s value preposition under the World Bank’s sponsored housing finance strategy aimed at removing barriers in housing finance.
Ogundimu went on to add that it was also aimed at promoting the creation of an enabling environment for housing development and mortgage creation across the states in Nigeria through the adoption and passage of the NMRC’s proposed Model Mortgage Foreclosure Law.
What you should know: Model Mortgage and Foreclosure Law (MMFL) is an initiative of the Nigerian Mortgage Refinance Company which calls for the creation of a state mortgage board as a single-window clearance mechanism to facilitate accessible and affordable mortgages for residents of the state.
About the NMRC: The NMRC was established in 2013 by the Federal Ministry of Finance (FMOF), the Central Bank of Nigeria (CBN), Federal Ministry of Lands & Urban Development & Housing and the World Bank/IFC as a non-deposit taking financial institution with the core activity of refinancing mortgages.