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From the N18 billion it has raised from the capital market between 2015 and 2019, the Nigerian Mortgage Refinance Company (NMRC) is said to have refinance mortgages originated by its 12-member primary mortgage banks PMBs and three commercial banks, leading to the creation of 900 mortgages.
But it remains to be seen where those mortgages so created are being used as their impact is not felt in both the housing and mortgage sector. After the consolidation and recapitalization of the primary mortgage institutions (PMIs), leading to their name change, reduction in their number from 83 to 40, at the time, and increase in capital base, expectation was that their impact would be felt considerably in the housing sector.
However, even though the capital base of the PMIs which became primary mortgage banks (PMBs) was moved from the statutory N100 million to N2.5 billion for those licenced to operate at regional level and N5billion for those with national operating licence, Nigeria’s housing problem still persists.
When the NMRC was set up by the federal government, part of its mandate was to increase liquidity in the mortgage market as a critical step towards increasing housing affordability.
With its N18 billion, only a few of PMBs had mortgages for refinancing because, according to Kehinde Ogundimu, NMRC’s CEO, the PMBs that did not get refinanced were not viable. “We don’t refinance any PMB that is not doing well”, he said.
From the consolidation and recapitalization time to this moment, many of the PMBs have been struggling, unable to originate mortgages or give housing loans. Not even the revised operational guidelines by the Central Bank of Nigeria (CBN) which stripped them of other business concerns and compelled them to focus on their core business of providing mortgages and housing finance for … Read More...