Emmanuel Addeh in Abuja
The Minister of Housing and Urban Development, Mr. Ahmed Dangiwa, yesterday told heads of mortgage institutions in Nigeria to find innovative solutions that will make financing more accessible and affordable to Nigerians.
Speaking during the 20th edition of the Mortgage Banking Chief Executives’ Annual Retreat in Abuja, Dangiwa urged the mortgage bankers to be creative in developing housing products for the country.
The theme of the programme was: ‘Advancing Sustainable and Affordable Housing in Nigeria: Navigating Macro-economic, Legislative, and Policy Frontiers.’
He noted that CEOs of mortgage banks must find new ways to navigate the harsh macroeconomic environment and ensure that ordinary Nigerians, especially those in the low- and medium-income bracket can access the finance they need for home ownership.
“While the government works to fix this macro-economic challenge, I still believe that as CEOs of mortgage banks, you can find creative ways to develop innovative mortgage products that are responsive to Nigeria’s current economic situation.
“This includes adopting rent-to-own mortgage options and flexible monthly mortgage loan repayments to make commercial loans more affordable.
“I note with concern that the capital market has not been maximally tapped to raise long-term funds to refinance mortgage loans and to explore more creative ways to make mortgages more affordable even as we work to fix the larger macro-economic problems.
“As leaders, we must not only see the provision of housing and home loans from a business and profit perspective but also see expanding access to affordable mortgages as a moral imperative,” he said.
While acknowledging the presence of legacy challenges and barriers that hamper development in the sector, he charged the mortgage bankers to see themselves as leaders with a moral imperative to make housing more affordable and easily accessible to Nigerians.
“I am pained to note that the same problems that have been militating against the growth of housing finance, mortgage adoption, and housing delivery in this country and have been the points of discussion at every one of the previous 19 editions are the same ones that still plague the sector today,” he added.
Dangiwa stated that he was aware of the cost of funding and its impact on lending rate, which he said is a reflection of the broader economic reality.
He expressed confidence in the ability and willingness of President Bola Tinubu to drive economic growth and create a more friendly environment for mortgage banking to thrive in Nigeria.
The minister assured the mortgage bankers that the jinx of macro-economic, legislative and policy issues that had held down the growth of effective housing delivery in the country will be broken under the leadership of Tinubu.
Speaking earlier, the President of the Mortgage Banking Association of Nigeria (MBAN), Ebilate Mac-Yoroki, noted that the retreat provided a platform for deliberation aimed at harnessing policies and partnerships to create products that ensure access to affordable housing financing.
Also speaking at the event were the Managing Director and Chief Executive of Nigeria Mortgage Refinance Company (NMRC), Kehinde Ogundimu, who observed that despite efforts by mortgage bankers in the past years, the industry has performed below expectation.
