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NMRC: FG plans N50bn bond, IFC to invest N40.8bn

By on March 31, 2014

The Federal Government has disclosed plans to raise a N50 billion bond to augment the initial take off fund of the recently launched Nigeria Mortgage Refinancing Company (NMRC) in a bid to boost housing finance in the country. This is even as the International Finance Corporation (IFC) is set to invest $255 million (about N40.8 billion) in the NMRC.

Minister of Finance & Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, said at a “Stakeholders Implementation Summit on Enabling Broader Access to Housing Finance for All Nigerians” last week, in Abuja, that the issuance of bond is aimed at ensuring easy access to affordable housing by Nigerians.

“This housing finance and housing development implementation summit gives us the opportunity to fulfill President Goodluck Ebele Jonathan’s drive to use housing to solve social problems for Nigerians whilst also creating jobs and growing the economy.  I want us to leave here today having pledged to jump start the programme with at least 10,000 new house owners or mortgage beneficiaries by the end of the year.

The government is doing everything to ensure that the programme succeeds and all the stakeholders, including state governments, are already involved in it.  The Federal Government will soon raise N50 billion bond to increase the funding for this programme. This is to assure Nigerians that government is conscious of the issues that bear directly on the welfare of the people and is doing everything to reduce their burden, especially on housing needs,” she said.

In a related development, Executive Vice President of IFC, Mr Jim-Yong Cai, said IFC plans to invest a total of $1.5 billion (N240 billion) to support housing and infrastructure development in the country. He disclosed this after a meeting with Okonjo-Iweala in Abuja.  “IFC has been following what is happening in key sectors of the Nigeria’s economy and we are encouraged to join in the investment in some of them, especially housing which is important in providing homes to many citizens. We are very committed to enlarge our commitment and scale up our investment in Nigeria,” he stated.

 

 

 

[Vanguard]