Nigeria has N59trn housing deficit
Written
by Gbola Subair - Abuja
Nigeria will
need a whooping N59 trillion to provide the housing needs of the citizenry, the
Managing Director of Federal Mortgage Bank of Nigeria (FMBN), Gimba Ya’u
Kumo has disclosed.
Kumo, speaking when he received an award as Africa’s Housing Innovative Rising Star at the just concluded Invest in Africa World Summit held in Abuja, described dearth of long term financing for housing, mortgage and infrastructure as one of the problems impeding the growth of the housing sector in Nigeria.
Breaking down how the N59 trillion potential of the market was arrived at, Kumo said the housing deficit in the country which is estimated to be 17 million units when multiplied by N3.5 million, which is the estimated cost of a single housing unit, it will result in the amount.
He, however, expressed optimism that with the Mortgage Utility Refinancing Company to be set up by the Federal Government soon, the housing sector would experience a revival that would attract investments to the sector and boos the economy.
Stressing that due to the short term nature of deposit money institutions, the FMBN boss said it had become very difficult to meet the mortgage requirement of the country which he put at between 15 to 20 trillion naira.
“The only source of income NHF we now collect through a portal, e-collection which has tripled collections. We were able to pay more mortgages and fund more constructions. We did that to show transparency so that contributors can see their contributions.
“We went ahead to start publishing the names of those who benefitted and those we have refunded because the law says if they retire, they ought to take their contributions and two per cent interest. We have refunded N1.2billion to about 78, 000 people in the last two years. “ he said.
He said FMBN has opened discussions with two investment entities, China Export and Credit Insurance Corporation (SINOSURE) and International Commercial Bank of China (ICBC), with a view to secure a single digit loan facility totaling US $6 billion for the development of the sector.
“The loan has a tenure of 15 to 20 years and would be given directly to Chinese Construction companies in the country on disbursement tranches of $1.5 billion basis who will build the houses under the supervision of the FMBN. The bank’s responsibility in the housing project shall be to create mortgages over the housing units, collect mortgage repayments and use the proceeds of the repayment to pay back the loan over the tenure facility”.
Kumo, speaking when he received an award as Africa’s Housing Innovative Rising Star at the just concluded Invest in Africa World Summit held in Abuja, described dearth of long term financing for housing, mortgage and infrastructure as one of the problems impeding the growth of the housing sector in Nigeria.
Breaking down how the N59 trillion potential of the market was arrived at, Kumo said the housing deficit in the country which is estimated to be 17 million units when multiplied by N3.5 million, which is the estimated cost of a single housing unit, it will result in the amount.
He, however, expressed optimism that with the Mortgage Utility Refinancing Company to be set up by the Federal Government soon, the housing sector would experience a revival that would attract investments to the sector and boos the economy.
Stressing that due to the short term nature of deposit money institutions, the FMBN boss said it had become very difficult to meet the mortgage requirement of the country which he put at between 15 to 20 trillion naira.
“The only source of income NHF we now collect through a portal, e-collection which has tripled collections. We were able to pay more mortgages and fund more constructions. We did that to show transparency so that contributors can see their contributions.
“We went ahead to start publishing the names of those who benefitted and those we have refunded because the law says if they retire, they ought to take their contributions and two per cent interest. We have refunded N1.2billion to about 78, 000 people in the last two years. “ he said.
He said FMBN has opened discussions with two investment entities, China Export and Credit Insurance Corporation (SINOSURE) and International Commercial Bank of China (ICBC), with a view to secure a single digit loan facility totaling US $6 billion for the development of the sector.
“The loan has a tenure of 15 to 20 years and would be given directly to Chinese Construction companies in the country on disbursement tranches of $1.5 billion basis who will build the houses under the supervision of the FMBN. The bank’s responsibility in the housing project shall be to create mortgages over the housing units, collect mortgage repayments and use the proceeds of the repayment to pay back the loan over the tenure facility”.
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