The Nigerian government has approved a 300-million-dollar credit facility to tackle housing deficit.
The loan from the International Development Association, which was approved at the Federal Executive Council meeting on Wednesday, will increase access to housing finance by deepening the primary and secondary mortgage markets.
The Minister of Finance, Dr. Ngozi Okonjo-Iweala will manage the loan on behalf of the Federal Government while the Attorney-General of the Federation, Mr. Muhammed Adoke, will issue the legal opinion required to render the project effective.
The Minister of State for Finance, Dr. Yerima Ngama told reporters that the loan was interest-free and would be repaid over 40 years.
According to Nigeria’s Housing Authority, the housing deficit in Nigeria is estimated at 17 million.
A breakdown of how the loan will be expended shows that 250 million dollars will be used to establish a Mortgage Refinance Company and another 25 million dollars for the establishment of the Mortgage Guarantee Product.
The remaining 25 million dollars will be given as loan to Housing Micro Finance banks to enable them provide finance for housing.
The project is also expected to create investment opportunities in the sector and create jobs.