World Bank, Nigeria in $300m mortgage deal

A MAJOR revolution in Nigeria’s housing sector is underway.
The World Bank is partnering with the Federal Government to develop a $300 million mortgage financing structure for affordable houses.
Besides the joint venture, local banks are to collaborate with the government to develop a mortgage vehicle to manage housing development.
The project will be mainly private sector-driven, with the government having a marginal share.
Finance Minister Dr. Ngozi Okonjo-Iweala, in the company of Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi, made the disclosures yesterday at the ongoing World Bank/ International Monetary Fund (IMF) meetings, holding in Washington D.C, United States (U.S).
The minister said the World Bank facility would attract a zero per cent interest; 0.7 per cent commitment charge; 10 years of grace; and 40 years repayment period.

She put Nigeria’s housing deficit at 17 million, which she said, has been growing by two million annually.
Dr. Okonjo-Iweala said that the government has urged states willing to pioneer the scheme, to remove the impediments on land acquisition, issuance of certificate of occupancy and other constraints on land-related issues.
According to her, six states, Lagos, the Federal Capital Territory (FCT), Bauchi and Anambra states, have all signified to participate in the pilot phase.
She disclosed that the guidelines for setting up the structure of mortgage financing in the country is already being worked out and that by the end of the year, the institution will be in place.
It will become operational early next year.

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