The World Bank invests €221m to develop housing finance in Nigeria
The World Bank approved a $300 million (€221 million) credit to boost the development of long-term mortgages in Nigeria.The World Bank approved a $300 million (€221 million) credit to boost the development of long-term mortgages in Nigeria.
The purpose of this funding, which is part of the Nigeria Housing Finance Project, is to facilitate access to social housing for middle and lower income families.
"This project will directly benefit new home owners who struggle to find available cash to purchase a long-term mortgage and increase incomes for Nigerian families through the creation of new jobs," said Michael Wong, the World Bank Task Team Leader for the project, quoted by Business Day.
The program includes the creation of a refinancing company - the Nigeria Mortgage Refinance Company - and a mortgage guarantee product to cover the risks of low-income borrowers.
The funds will also support the development of a new mortgage product in Nigeria that will serve as a pilot designed to demonstrate a sustainable business case for this activity.