The Mortgage Banking Association of Nigeria (MBAN) has lauded the federal government’s N250 billion Mortgage and Real Estate Investment Fund (MREIF), saying it will change the face of housing accessibility in the country.
In a statement signed by its president, Mr Ebilate Mac-Yoroki and secretary, Mr Adedeji Ajadi on Monday, MBAN said that it was a strategic intervention towards addressing the huge housing deficit and revitalising the mortgage banking subsector.
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.
“This development underscores the importance of public-private collaboration in addressing critical national challenges, such as affordable housing.
“MBAN remains committed to working closely with the federal government and other stakeholders to achieve sustainable housing solutions for Nigerians.”
The association encouraged all Nigerians to seize the unique opportunity to have access to affordable mortgages, fulfil their dreams of home ownership and contribute to narrowing the housing gap.
“Please, be assured that the members of mortgage banks and mortgage brokerage companies of MBAN are poised to facilitate this process, ensuring that the benefits of this transformative fund drill down to each of those who need it the most.”