Across the countries of Sub-Saharan Africa, mortgage penetration is weak, especially for low-income populations, and most lenders view low-income groups as being too high-risk due to having informal incomes or a lack of proper collateral. In an attempt to expand their mortgage market, especially for low-income borrowers, Nigeria established the Nigeria Mortgage Refinance Company (NMRC) in 2014. This mortgage liquidity facility is a private sector-driven company aimed at raising long-term funds in domestic and international capital markets in order to develop both the primary and secondary mortgage markets.
The establishment of NMRC has been one of Nigeria’s first successful collaborations between the public sector and private financial sector. The World Bank approved a US$300 million loan on a 40-year term, which will be split between the NMRC, establishing a low-income Mortgage Guarantee Facility, and housing microfinance product development.
Source:
World Bank Group. (2015) Stocktaking of the Housing Sector in Sub-Saharan Africa : Challenges and Opportunities. World Bank, Washington, DC.
Link: https://openknowledge.worldbank.org/handle/10986/23358