The President, Mortgage Banking Association of Nigeria (MBAN) Dr. Femi Johnson has revealed that the size of mortgage market has grown from N284 billion in 2010 to N518.76 billion in 2016 .
Johnson who spoke at the just concluded two-day conference organised by the African Union for Housing Finance, in partnership with the Nigeria Mortgage Refinance Company (NMRC) is slated for September 14 and 16 at the Petroleum Technology Development Fund (PTDF) Centre, Abuja, said that only about 5 per cent of the 13.7million housing units in Nigeria are currently financed with a mortgage.
He suggested the gradual reduction in interest rate in the economy from Current Monetary Policy Rate (MPR) of 14 per annum to a maximum of 6 per annum and removal of operational bureaucracy such as the reduction in cost of title transfer to a maximum of 1 per cent of property value; time to a maximum of three days, and procedures limited to only one Desk (1:3:1).
According to him, the government should subsidize construction targeted at vulnerable and low-end of the market as well as set robust operational guidelines to enhance profitability of mortgage banks and create of cheaper sources of funds.
MBAN president further advocated for the re-capitalisation of FMBN to N500 billion, assistance of CBN on the draft foreclosure laws being pushed through states for adoption to ensure quick passage and enhance mortgage business.
He also advised CBN to collaborate with MBAN on advocacy towards support for the sub-sector in order to enhance public trust and confidence, adding that the introduction of innovative housing finance products will extend the reach of formal mortgages.
AUHF is a 55 – member association of mortgage banks, building societies, housing corporations and other organisations working on the mobilisation of funds for shelter and housing on the African continent, with the overarching goal of promoting housing finance on the African continent.
Its yearly conferences and meetings are highly in-demand platforms for brainstorming and knowledge sharing on developments in the sector on the continent, for identifying new housing investment opportunities, generate new business, and promote related products and services.