The Mortgage Banking Association of Nigeria (MBAN) says the Federal Government’s N250 billion Mortgage and Real Estate Investment Fund (MREIF) will change the face of housing accessibility in the country.
It added that it was a strategic intervention towards addressing the huge housing deficit and revitalising the mortgage banking subsector.
The President of MBAN, Mr Ebilate Mac-Yoroki and the secretary, Dr Adedeji Ajadi, disclosed this in a statement on Monday in Abuja.
MBAN is the bona fide Self-Regulatory Organisation (SRO) and umbrella body for all the mortgage banks licensed by the Central Bank of Nigeria (CBN) and the mortgage brokerage companies registered by the association to engage in mortgage business.
They described the initiative as a demonstration of a strong political will towards providing access to long-term and sustainable mortgage banking/housing finance to Nigerians.
“The initiative aligns with the federal government’s objective to tackle the significant housing deficit in Nigeria, while stimulating economic growth and employment creation in the mortgage banking and real estate/housing construction value-chain.
“The N250 billion MREI-Fund is structured to attract private sector and capital market long-term investments from pension funds operators (PFO) and life insurance companies, which would be blended with low-cost seed funding provided by the government.
“This innovative financing model would act as catalysts 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 home-owners, currently burdened by high interest rates and affordability issues.(NAN)
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