FMBN Seals $2b Deal with REDAN, Shelter Afrique
By Modupe Gbadeyanka
A $2billion tripartite Memorandum of Understanding (MoU) has been signed by the Federal Mortgage Bank of Nigeria (FMBN) with Real Estate Developers Association of Nigeria (REDAN) and Shelter Afrique.
Acting Managing Director of FMBN, Mr Richard Esin, explained at the weekend that the deal was in recognition of the opportunities that would arise from the launch of a National Housing Model.
He explained that the agreement involves a commitment by Shelter Afrique to provide the sum of $2 billion towards housing provision in Nigeria.
According to him, “The objective of the strategic collaboration is to harness each party’s competencies and strengths in the areas of training, research, advocacy, and mobilisation of financial resources, both international & domestic, in support of projects of mutual interest to ensure the successful delivery of affordable housing in Nigeria and involves a commitment by Shelter Afrique to avail the sector $2 billion construction finance towards housing provision in Nigeria.”
Mr Esin noted that, “The development is coming at an auspicious time in the life of the bank when it has moved from a deficit position to operating surplus in 2016, creating 736 individual mortgages up to the tune of N5.4billion within the period.”
“We are optimistic that the partnership would result in the growth of the sector and lead to an increase in the contribution of the sector to the nation’s Gross Domestic Product. He called for the commitment of all parties to the successful execution of the programme,” he said.
In his remarks, president of REDAN, Rev. Ugo Chime, disclosed that the cooperation was a strategic attempt to create a seamless interface from construction finance to mortgage finance and all in-between, towards easing the challenges faced in the sector.
On his part, Managing Director/Chief Executive of Shelter Afrique, Mr James Mugerwa, said the deal aims to forge an end to end solution that addresses issues within the entire value chain, from supply to demand.