World Bank approves $300m to finance Nigeria’s housing market

LandscapeThe World Bank has approved a $300 million funding to finance the housing market in Nigeria.

The credit is to boost Nigeria’s efforts to provide affordable mortgages for middle-income and lower income families, said the World Bank after its Board of Directors approved the funding September 26, 2013.

“This project will directly benefit new home owners who struggle to find cash to purchase a long-term mortgage and increase incomes for Nigerian families through the creation of new jobs,” said Michael Wong, the World Bank Task Team Leader for the project.

According to the World Bank, the Nigeria Housing Finance 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 added that the project 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.

By Ekow Quandzie

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