A new Memorandum of Understanding has been endorsed between Nigeria’s foremost mortgage underwriter and a pioneer mortgage brokerage and real estate marketing firm that ensures the removal of barriers to home ownership for off takers.
The deal between the Nigeria Mortgage Refinance Company (NMRC) and Modern Shelter Systems and Services Limited (Modern Shelter), will tackle barriers such as equity contribution constraints, access to mortgage loans and delivery of qualitative and affordable housing.
The partnership agreement will see both firms working together towards the provision of housing finance, training, research, advisory and project structuring to increase housing stock that will drive mortgage creation and penetration in Nigeria, using alternative financing mechanisms that align with NMRC’s underwriting standards.
The agreement is also expected to promote knowledge, technological transfer and support that grants Modern Shelter access to and use of NMRC’s flagship Housing Market System (HMS) as a means of mortgage prequalification and source of investment for construction finance.
NMRC’s Managing Director, Prof. Charles Inyangete, explained that in driving mortgage penetration and influencing housing stock development, the company invested substantial sums of money in providing and improving policy requirements and information systems’ infrastructure that will assist market players to make affordable housing delivery and access to finance scalable hurdles.
The Managing Partner of Modern Shelter, Mr Abdulmalik Mahdi stated that the partnership with NMRC would facilitate access to alternative finance investors and improve the company’s ongoing engagement with Sterling Bank and Jaiz Bank using non-interest mortgage banking structures.
He added that it has partnered and works closely with reputable developers to ensure availability of good and affordable housing stock for clients of different income brackets.
The Chairman of Modern Shelter, Mr. Adebola Sheidu who is also Chairman of Brains & Hammers, noted that the MoU and engagement would tie in with the proposed delivery of various projects by Brains & Hammers.
The company is working to deliver over 5,000 housing units over a five-year period across key states in Nigeria. These include, Brains & Hammers City Abuja, Jubilee Estate, Iganmu Lagos and a proposed housing spin – off of the landmark Kano Economic City project. He assured of Brains & Hammers capacity to deliver the housing stock needed to fuel this partnership.
The partnership has the huge potential of improving mortgage finance standards, particularly for the informal sector; it will also better enable NMRC’s member Banks to further create assets that will in turn drive refinance activities, add value and expected outcomes to first time home owners and attract non-interest investors into the housing and real estate sector.
Meanwhile, NMRC has empowered 45 Internally Displaced Persons (IDPs) with technical skills in key aspects of housing construction work as part of its corporate social responsibility programme.
The first set of beneficiaries are residents of he IDP Camp in New Kuchingoro, Games Village, Abuja, who graduated after a two- months training programme in masonry, tiling, plumbing as well as electrical installation skills facilitated by the Industrial Training Fund (ITF).
The training course began November last year and was designed to empower lives of the displaced persons as well as signal NMRC’s contribution to ongoing efforts to redress the skills gap in the building industry in Nigeria, often cited as one of the key constraints to the growth of a robust housing market growth.
Speaking at the closing ceremony to mark the graduation of the IDPs, Inyangete noted that the training program is part of NMRC’s strategic community outreach program designed to impact lives and contribute to solving problems in the housing construction sector.
He also encouraged the beneficiaries to take pride in themselves and the skills they have acquired to take their lives to the next phase.
