FMDQ, NMRC Partner to Boost Housing Via Debt Capital Market

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The FMDQ OTC Securities Exchange and the Nigeria Mortgage Refinance Company Plc (NMRC) have signed a memorandum of understanding (MoU) that will facilitate sourcing of long-term funds from the capital market towards the development of the mortgage industry and ultimately bridge Nigeria’s housing deficit through the provision of affordable housing finance.

The MoU, which was signed in Abuja, came on the heels of the Regulatory Supervision Collaboration Agreement, which FMDQ recently executed with the National Pension Commission (PenCom), towards enhanced and efficient pension fund governance, regulation and supervision.

Speaking during the signing ceremony, Prof. Charles Inyangete commended FMDQ for its immense contribution to the development of the Nigerian debt capital market (DCM), noting that the pact with the exchange demonstrates NMRC’s commitment to deepening the DCM.

Also speaking, the Managing Director/Chief Executive Officer, Mr. Bola Onadele.Koko said this partnership will mark an essential step towards the development of the Nigerian housing sector through, among others, the introduction and deployment of initiatives aimed at launching a range of mortgage products; the articulation of strategies aimed at developing the Nigerian mortgage industry through non-interest finance ( Sukuk); partnership on awareness programmes, investor/market education and capacity building in Nigeria; and the expansion of listing opportunities for NMRC debt securities. “These initiatives are geared towards engendering market confidence and allowing NMRC to effectively connect the Nigerian mortgage industry to the DCM and collaboration on pricing methodology, valuation framework and index development for mortgage bonds,” he said.

Also, FMDQ, in partnership with NMRC and other key stakeholders, will engage in relevant initiatives and campaigns to educate the market on mortgage-related debt instruments such as mortgage-backed securities, real estate investment trusts, among others, in readiness for the ensuing housing revolution which the Nigerian market is positioned to experience.

Anaysts said Nigeria’s housing crisis is undoubtedly treading a path towards resolution, with institutions like NMRC, putting in place the necessary requisites for vibrant primary and secondary mortgage markets, and FMDQ providing the necessary DCM support, collaboratively working towards the ultimate goal of developing the Nigerian economy.

Meanwhile, the Nigerian equities market rebounded yesterday, gaining 0.69 per cent to close at 27,284.83 after three days of loss. Market capitalisation added N64.10 billion to close at N9.37 trillion.
A total of 18 stocks appreciated while 17 stocks depreciated. However, analysts at Cordros Capital Limited said: “With no positive catalyst on the horizon, we do not see today’s rebound being sustained in tomorrow’s session.”