Nigeria’s mortgage-finance company, which said it will mimic the U.S.’s Fannie Mae, plans to sell bonds in capital markets in a bid to tackle the 17 million-unit housing deficit in Africa’s most populous nation.
The Nigeria Mortgage Refinance Co. will provide long-term financing to lenders that will help them be able to give more home loans, Finance Minister Ngozi Okonjo-Iweala said at an event in the capital, Abuja, to start the company.
It will be “three to four months before they will be able to go to the markets, float the bonds, and get the liquidity going,” Okonjo-Iweala said, without giving details.
Nigeria has been seeking to expand financing to help address a housing deficit in the continent’s second-biggest economy. The West African nation needs to provide more than two million homes a year to reduce the housing shortage, according to Okonjo-Iweala’s ministry. The company will help extend maturities for Nigerian home-buyers to as much as 20 years, encouraging the building of 75,000 new homes a year and creating at least 300,000 jobs initially, she said.