The World Bank helps Nigeria with $300 millionStaff writer ▼ | September 30, 2013
"The Nigerian financial system has quickly grown and is becoming increasingly integrated into the regional and global financial systems. Today's project will further the country's economic success, strengthen the nascent mortgage market and create much-needed jobs in construction, housing improvement, finance and other sectors throughout Nigeria," said Nigeria Marie Francoise Marie-Nelly, the World Bank Country Director.
Financing will support Nigeria's Housing Finance Project. The project is an integral part of the Government's Transformation Agenda and is designed to provide access to long-term financing for first time homeowners and new homeowners with lower family incomes, including people who are self-employed in the micro finance market segment.
The project will support the establishment of a mortgage refinance company, also known as a Nigeria Mortgage Refinance Company that will generate long-term funds for home mortgages. It will also establish a mortgage guarantee product, targeted at lower income borrowers that will be used to guarantee some of the credit risk for this special group of lenders.
Funds will also support the development of a new Home Microfinance industry in Nigeria that will serve as a pilot designed to demonstrate a sustainable business case for this activity. ■