Nigeria: The FMBN recapitalisation will boost mortgage penetration
The recapitalisation of the Federal Mortgage Bank of Nigeria (FMBN) should effectively tackle the low mortgage penetration in the country, according to the Nigerian Minister of Housing Ama Pepple."I am confident that many of the challenges associated with low mortgage penetration in the country in the past will be addressed sooner than later," she said, quoted by Vanguard.
The Nigerian Mortgage and Finance Corporation (NMFC) is a liquidity facility vehicle aimed at injecting funds into the Nigerian mortgage sector, which is expected to become operational in the third quarter of this year, with an initial capital of N20 billion (€98 million).
Ama Pepple also urged the Board of Directors of the FMBD FMBN to develop alternative funding mechanisms that would match the needs of mass housing delivery in the country.
According to a recent report by the UN Centre for Human Settlement, Nigeria has a housing deficit of between 12 and 16m units.
The country also suffers from a low mortgage penetration, which only accounts for 0.12 per cent of GDP, according to figures from the Central Bank of Nigeria.