Nigeria wants to lower mortgage rates
The government is targeting single-digit interest rates on long-term mortgages.Nigeria is aiming to implement single-digit
interest rates on long-term mortgages under a new housing finance initiative.
Minister of Finance, Kemi Adeosun, said at a conference of the African Union for Housing Finance (AUHF) last week that the initiative targets the construction of over 300,000 affordable houses through mortgage financing and the creation of 700,000 new jobs across the housing development value chain, Vanguards reports.
She called for the implementation of monetary policies that would support low interest rates by finance institutions, adding that there is a need for innovative financial solutions that will stimulate housing development, related industries and create jobs across the nation.
Meanwhile, the Governor of Central Bank of Nigeria Godwin Emefiele said that the development of Nigeria’s housing market is key to growing the economy and the GDP.
He noted that the housing sector currently contributes less than one
per cent to the nation’s GDP while in the US, this figure stands at 80 per cent.