This funding comes from the U.S. International Development Finance Corporation (IDFC) as part of an Affordable Mortgage Financing initiative, which is included in a larger $228 million blended financing arrangement facilitated by MiDA Advisors and Stanbic IBTC Capital, a subsidiary of Standard Bank Group.
Through this collaboration, NMRC seeks to tackle the liquidity challenges present in Nigeria’s mortgage finance sector.
Additionally, NMRC has partnered with MiDA Advisors, based in the U.S., and Standard Bank Group, headquartered in Johannesburg, to develop a blended finance solution aimed at mobilizing substantial long-term financing.
The financing structure comprises a $200 million loan from the U.S. International Development Finance Corporation (DFC) and $28 million raised from local financial markets, culminating in a total of $228 million in long-term blended financing.
This strategic partnership with DFC is expected to provide essential liquidity to help address the housing deficit in Nigeria, thereby fostering more equitable economic growth and development.
Furthermore, the funds will be allocated through on-lending to primary lending institutions, such as commercial banks and primary mortgage banks, to refinance or pre-finance eligible mortgage loans for qualifying borrowers throughout Nigeria.
According to the National Bureau of Statistics (NBS), 63 percent of Nigerians live in multi-dimensional poverty. Consequently, this financing initiative aims to extend credit access to vulnerable populations, including those in Nigeria’s extensive informal sector, low-income earners, and women who encounter significant challenges in their pursuit of home ownership.
Approximately 20 percent of the loan will be designated for informal and low-income borrowers, while around 40 percent of the mortgages set for refinancing or pre-financing will be those underwritten to women as borrowers or co-borrowers.
In response to the loan approval, Mr. Kehinde Ogundimu, Managing Director and Chief Executive Officer of NMRC, expressed his appreciation to DFC, highlighting that this development underscores NMRC’s role as a pivotal entity within the housing sector.
“This transaction will undoubtedly bolster our initiatives to provide affordable long-term housing finance, positively influencing the entire sector. It reflects the confidence that DFC and other local and international financial institutions have in our ability to manage long-term facilities that will significantly benefit the lives of Nigerians.
“Our targeted approach towards low-income earners, the informal sector, and women illustrates the direction of our initiatives. We are dedicated to promoting equitable access to housing credit facilities, enabling vulnerable Nigerians to realize their homeownership aspirations,” he stated.
Mr. Aymeric Saha, Chief Executive Officer of MiDA Advisors, remarked: “We are delighted to collaborate with NMRC and Standard Bank to create another transformative housing finance solution that will benefit over 6,000 households in Nigeria. This transaction once again showcases the effectiveness of partnerships with Africa’s leading companies like NMRC in addressing the social infrastructure financing needs in the region.”
The Chief Executive of Corporate and Investment Banking at Standard Bank Group, Mr. Luvuyo Masinda, stated that this transaction exemplifies the bank's dedication to fostering socio-economic development across Africa by promoting sustainable investments on the continent. He emphasized the bank's understanding of the needs and challenges faced by the African populace and its commitment to providing innovative solutions to meet these demands. He described the transaction as remarkable, highlighting its positive implications for Nigeria and the broader continent.
In addition, Oladele Sotubo, Chief Executive of Stanbic IBTC Capital Limited, the fully owned investment banking subsidiary of Stanbic IBTC Holdings PLC, remarked on the transaction, expressing satisfaction in collaborating with MiDA Advisors to secure this significant financing aimed at improving the accessibility and affordability of mortgages in Nigeria. He noted that the goals of this transaction align closely with Standard Bank Group’s mission to drive growth in Africa, and he expressed pride in being part of this initiative.