Ogun State Commissioner for Housing, Jagunmolu Akande Omoniyi met with the Executive Leadership of Nigeria Mortgage Refinance Company (NMRC), along with the Management of the State-owned Gateway Mortgage Bank yesterday 23rd August, 2021.
The meeting focused on how to sustain the existing Strategic Mortgage Financing Partnership between the State and the Bank with regards to the State’s Affordable Housing Projects. Wale Osisanya (MD, Gateway Mortgage Bank) and Kehinde Ogundimu (MD, NMRC) were at the meeting.
Nigeria’s mortgage system remains unattractive with the incidence of high inflation and interest rates. With an estimated 250 million population, 30 million housing deficit, 25% homeownership rate, 20 trillion Naira mortgage financing requirement, high cost of financing and time value of money over amortization, affordable housing will remain a mirage for 80% of the population by the year 2030.
As a World Bank-backed institution, NMRC issues long-term bonds in the capital market to provide refinancing facilities to eligible loan portfolios of financial institutions extending mortgages. This is done to increase the maturity structure of mortgage loans and reduce mortgage rates. Through its partnership with Gateway Mortgage Bank, mortgage financing for end users is expected to be in line with the 6% interest rate benchmark already established under the National Housing Fund Scheme.
Beyond finance, Nigeria’s mortgage sector is still struggling with the issues of title to property, bureaucracies in land documentation, and absence of effective foreclosure law, and this serves as a major disincentive to mortgage financiers. Without the foreclosure law, the cost of litigation for repossession of properties from defaulters will remain prohibitive and inefficient.
Speaking with our correspondents, Honorable Commissioner Jagunmolu Omoniyi reemphasized the commitment of Ogun State Government under the leadership of His Excellency Dapo Abiodun, towards the provision of affordable housing and convenient terms for the good people of the State. He disclosed several low cost housing projects are at various stages of completion, and reassured that government will use all tools at its disposal to ensure people could buy and own their homes in the State.
(SENS Newswire, Abuja)