The Nigeria Sovereign Investment Authority, through its Nigeria Infrastructure Fund, has announced that its board has approved a firm equity commitment of N1.6bn in the Nigeria Mortgage Refinance Company Plc.
It, however, said the investment was subject to applicable regulatory clearance by the Securities and Exchange Commission.
According to a statement by NSIA, the NSIA’s Managing Director and Chief Executive Officer, Mr. Uche Orji, will also join the NMRC’s Board of Directors.
NMRC was initiated by the Federal Ministry of Finance in collaboration with the Central Bank of Nigeria, Federal Ministry of Lands & Urban Development & Housing and the World Bank/International Finance Corporation, with the principal objective of addressing the long-term funding constraints hindering the growth of the primary mortgage market, and reducing the funding cost of residential mortgages and availability of housing to working Nigerians.
The NMRC is a private sector-driven company with the public purpose of improving the critical housing sector in the Nigerian economy by bridging the funding cost of residential mortgages and promoting the availability and affordability of housing to Nigerians by increasing liquidity in the mortgage market.
NMRC was incorporated on June 24, 2013. It is strongly identified as a company with national coverage, and already has an initial roll-out support from 14 pilot states in the country and the Federal Capital Territory.
The statement quoted Orji as saying, “Our investment in the NMRC is one of the pillars of our investment strategy in the housing and real estate sector, which also include investment in affordable and mass housing and other commercial real estate.
“This investment will provide a significant catalyst to expand access to financing for homeownership to Nigerians. We believe this is one of the fastest growing and profitable segments of the economy and will deliver tangible value to the Nigerian people.”
The statement quoted the Task Manager, NMRC, Mr. Sonnie Ayere, as saying, “NMRC intends to strengthen its Tier 1 Capital base to efficiently leverage the credit support of the $250m Subordinated Tier 2 Capital from the World Bank, and NSIA’s firm equity commitment of N1.6bn, is a strong demonstration of investor confidence in NMRC and its mission of providing access to affordable mortgage finance in the Nigerian housing market.”