Nigerian Low-Cost Mortgage Lender Set for $1.4 Billion Boost
- Federal Mortgage Bank to get 100 million naira capital a year
- Nigeria seeks to expand funding to cut its housing deficit
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Nigeria’s government plans to inject 500 billion naira ($1.4 billion) into its low-cost mortgage lender over the next five years in an effort to spur home ownership that has failed to take off in Africa’s most-populous nation.
Faced with a housing deficit of 17 million units, Nigeria is seeking to improve access to home loans in an economy that vies with South Africa as the continent’s biggest. A lack of proper land deeds, poverty and record high interest rates means there are only an estimated 50,000 registered mortgages, of which state-owned Federal Mortgage Bank of Nigeria accounts for 18,200, according to Chief Executive Officer Ahmed Musa Dangiwa.