AG Mortgage, Cutstruct unveil delivery-linked housing finance model

AG Mortgage Bank PLC, in partnership with Cutstruct Technologies Limited, has launched an integrated housing finance initiative aimed at curbing fund diversion.

The initiative, which was unveiled at a recent developers’ forum co-hosted by both organisations in Lagos, is expected to improve project completion rates and strengthen Nigeria’s housing delivery system.

At the core of the partnership is a delivery-based funding architecture for the built environment.

Under the model, AG Mortgage finances and facilitates bulk procurement of building materials directly through Cutstruct, while operational funds are disbursed separately to developers for site management, logistics, salaries and administrative expenses.

By separating material procurement from operational cash flow, the structure aims to minimise diversion risk, stabilise input costs and protect project timelines.

“Sustainable growth in housing requires alignment among financiers, developers, regulators and technology providers,” Ngozi Anyogu, the managing director and CEO, AG Mortgage Bank PLC, said.

According to him, the initiative forms part of the bank’s broader strategy to build a collaborative and disciplined mortgage ecosystem.

He explained that the bank views developers not merely as loan beneficiaries but as strategic partners within a shared value chain.

He noted that systemic issues in real estate can only be resolved through coordinated reform anchored on transparency and mutual trust.

John Oamen, founder and CEO, Cutstruct Technologies Limited, said access to structured and transparent financing remains a major constraint for many developers.

He observed that numerous viable projects stall not for lack of demand or technical expertise, but because funding is misaligned or delayed.

Oamen described the collaboration as a strategic move to restore confidence in the ecosystem by providing structured capital to developers while offering lenders clearer visibility into credible projects.

Edwin Idegwu, in a keynote address titled Strategies for Sustainable Funding, said that fund diversion in the real estate sector is often structural rather than behavioural.

According to him, weak funding frameworks create liquidity pressures across multiple project sites, forcing developers into difficult financial decisions.

“Even credible developers struggle to deliver when the underlying funding system is weak,” Idegwu stated, identifying volatile building material prices, inflation, supply chain disruptions and poorly aligned disbursement schedules as key destabilising factors.

He explained that the AG Mortgage-Cutstruct framework is designed to strengthen developers’ bankability rather than restrict them, stressing that transparent systems lower systemic risk and reduce the overall cost of capital.

Idegwu further disclosed that credit assessment under the framework would increasingly prioritise measurable delivery performance over traditional collateral metrics, signalling a shift toward performance-driven lending.

Ugochukwu Chime, the group managing director, Copen Group, said capital is rarely the main constraint in housing finance, noting that investor confidence and predictable systems determine funding flows.

Akintoye Adeoye, president, Real Estate Developers Association of Nigeria, on his part commended AG Mortgage for the initiative, describing it as consistent with the Federal Government’s housing reform objectives.

The stakeholders agreed that beyond capital injection, reform across financing, procurement and digital governance is crucial to sustainable housing delivery.