NIGERIA – As the continent’s largest economy, international development experts, innovators and funders increasingly believe that Nigeria is positioned to provide a market-driven solution to one of the continent’s most significant challenges and opportunities: Affordable Housing.
While Nigeria’s size, ability to scale and recalibrated post-recession economy provides the ammunition for such a task, the scale of the endeavour requires the participation of multiple public and private sector participants to collaborate and make it a reality.
According to the Nigerian Mortgage Refinancing Company’s (NMRC’s) executive director for policy and strategy, Dr. Chii Akporji, major challenges against the robust growth of the housing sector in Nigeria include:
* A challenging macroeconomic environment with high-interest rates and inflation;
* Cumbersome land, titling and property registration procedures and the lack of a foreclosure mechanism;
* A dearth of long-term finance for the mortgage origination business, though the NMRC is in business to mitigate this risk;
* A dearth of affordable housing stock;
* Poor mortgage literacy levels.
As a key driver in the sector, the NMRC is driving several ongoing efforts to de-risk the sector in collaboration with key housing sector stakeholders such as the Central Bank of Nigeria (CBN), State Governments, Mortgage Banking Association of Nigeria (MBAN), the Federal Mortgage Bank of Nigeria (FMBN), Family Homes Fund (FHF) and major developers.