The Federal Mortgage Bank of Nigeria (FMBN), Shelter Afrique, and the Real Estate Development Association of Nigeria (REDAN), have signed a $2 billion Memorandum of Understanding (MoU) towards achieving 10, 000 housing units yearly across the country.
The project is scheduled to last for the next 10 years.
Minister of Works, Power and Housing, Mr. Babatunde Raji Fashola, who spoke at the event, observed that the money which will be provided by Shelter Afrique, to FMBN, represents a strategic partnership that would deliver affordable housing through mortgages at low interest rate.
Fashola who was represented by his Special Adviser on Housing, Mr. Abiola Oki, observed that the collaboration for housing delivery through REDAN, will create jobs for Nigerians within the sector, while at the same time shoring up the country’s housing stock.
He assured that government is working to recapitalize the apex mortgage institution to enable the bank deliver on its mandate, adding that government will provide conducive environment for both Shelter Afrique and the private sector through REDAN to deliver affordable within the framework of the national housing model.
The Acting Managing Director of FMBN, Mr. Richard Esin, noted that with $200 million injected in construction financing yearly, 10,000 housing units will be generated and if added up to other intervention schemes, over 20,000 housing units will be delivered.
For the National President of REDAN, Ugochukwu Chime, the development is the much-desired intervention needed to provide solution to the housing needs of Nigerians.
On his part, the Managing Director, of Shelter Afrique, James Murgerwa, stressed that the investment was a mutual and strategic alliance targeted at building quality and affordable houses.