FMBN, Shelter Afrique to seal $150m housing deal before year end

Nigeria’s quest to deepen its retail mortgage market is set for a big boost as the Federal Mortgage Bank of Nigeria (FMBN) and Shelter Afrique are putting finishing touches on a range of agreements that will see Shelter Afrique commit about $150 million into housing development at various locations across Nigeria before the end of 2016.

Richard Esin, who is the acting managing director of FMBN, disclosed this Tuesday at his office in Abuja, when Mohammed Dikko Abubakar, the inspector general of police, paid him a courtesy call to solicit his support towards housing development for men and police officers.

Maigari Abbati Dikko, who is the deputy inspector general of police (DIG) in charge of logistics and supply, represented him at the occasion.

“We also have another programme which will be coming up soon with a company called Shelter Afrique, which is going to bring in about $150 million as construction finance for the Nigerian housing market,” Esin explained.

Headquartered in Kenya, Shelter Afrique is the only pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa.

With a partnership of 44 African governments, the African Development Bank (AfDB) and the Africa Reinsurance Company, Shelter Afrique builds strategic partnerships and offers a host of products and related services to support the efficient delivery of affordable housing and commercial real estate.

These include project finance, institutional lending, equity investments, joint ventures, trade finance, and social housing.

The company also offers practical advice and technical assistance to a wide range of industry stakeholders.

Commenting further, the FMBN boss advised the Nigeria Police Property Development and Construction Company (NPPDCC) to register with the Real Estate Developers Association of Nigeria (REDAN), which is the umbrella body of the arm of stakeholders that Shelter Afrique is partnering with for the purpose of providing construction finance for the Nigerian housing market.

With such developmental partnerships in place, Esin said, it will be easier for the bank to provide off-take guarantee to make sure that the Nigerian mortgage house market does not suffer and that those in need of affordable shelter derive maximum benefit from it.

YANGE IKYAA