The Nigeria Mortgage Refinance Company Plc., (NMRC) has signed a memorandum of understanding with the Kaduna State Government to boost homeownership through mortgage.
Kaduna State’s Deputy Governor, Bala Bantex signed the pact on behalf of the government, with the consent of Governor Nasir El-Rufai, and the Managing Director of NMRC, Professor Charles Inyangete signed on behalf of the refinancing company.
The MoU, signed at the government house in Kaduna on March 2, this year, is positioned as a framework agreement for various collaborations between NMRC and Kaduna State in the government’s determined and structured efforts to institute a strong investment climate for affordable home ownership for its citizens.
The Agreement, among other terms of reference, covers the government’s planned Millennium City Project to provide affordable housing for citizens, as well as a commitment to support the provision of single digit mortgages through the creation of a sinking fund for citizens and public servants in the state.
The Deputy Governor noted that the partnership, apart from enabling affordable housing provision, also presented tremendous opportunity for the administration to meet critical and strategic initiatives in job creation and poverty alleviation.
“Home ownership is one of the critical paths to migrating citizens out of poverty,” he said and re-stated the government’s commitment to lifting its citizens out of the poverty trap through intervention in three key sectors – agriculture, mining and housing.
In noting the prevalent challenges to providing affordable housing, including market interest rates and dearth of affordable housing supply, the Deputy Governor stated that the Government is quite delighted at the opportunity to partner with NMRC to address these challenges, and to speed the adoption and passage of the draft Kaduna Mortgages Foreclosure Bill based on NMRC’s Model Mortgage and Foreclosure Law.
He commended the efforts of the Counsellor to the Governor, Mr. Jimi Lawal and the NMRC team in bringing the consultations and engagement to fruition through the signing of the MoU.
Prof. Inyangete thanked the government and the key stakeholders that made the partnership reality. He restated NMRC’s commitment to supporting the people and government of Kaduna State in working together to break down the encumbrances to mortgage and home ownership.
He commended the state’s leadership and efforts in this regard and invited the government to key into its recently launched Mortgage Market System – which integrates the financing operations of the key components of the entire housing value chain, from construction finance, to primary mortgage origination and administration to secondary market mortgage refinancing.
A Steering Committee comprising representatives of the NMRC and the government was immediately inaugurated to administer the execution of the terms of the Agreement.
The Committee’s immediate mandates are to ensure provision of affordable mortgage and housing construction, including the realisation of a proposed collaboration with the Central Bank of Nigeria, NMRC member banks for the setup of a mortgage interest rate intervention fund, among other initiatives.
Representing the government on the Committee are; the Senior Adviser to the Governor, Jimi Lawal, the Commissioner of Finance, Suleiman Kwari, and the Commissioner for Housing, Works and Transport, Hassan Mahmud and the Legal Adviser to the Governor, Aisha Dikko.
Representing NMRC are; Dr. Chii Akporji, Executive Director for Policy Strategy and Partnerships, Kehinde Ogundimu, Executive Director and Chief Financial Officer, and Abel Owotemu, Manager, Corporate Strategy.