Lagos, NMRC, Developer sign MOU to deliver 20,000 housing units

By Kazeem Ugbodaga

The Lagos State Government, the Nigeria Mortgage Refinance Company (NMRC) and developers on Monday signed a Memorandum of Understanding, MOU towards the construction and delivery of 20,000 housing units in Lagos.

The MOU, signed by the parties is in line with the Lagos Affordable Public Housing (L.A.P.H.) initiative of the Governor Akinwunmi Ambode’s administration geared towards the construction of 20,000 housing units through Joint Venture Initiative (JVI).

Speaking during the signing of the MOU at the Lagos State Government Secretariat in Alausa, Ikeja, Lagos, Southwest Nigeria, Commissioner for Housing, Prince Gbolahan Lawal said considering the prevailing economic situation in the country which had affected the finances of most citizens and their ability to personally fund the purchase of a home, the Ministry and the developers had initiated an arrangement with Primary Mortgage Institutions (PMI) and NMRC to facilitate the creation of mortgages for subscribers to the housing units under the initiative.

“The State Government is a subscriber to Nigeria Mortgage Refinance Company (NMRC) by virtue of the registration of our Lagos Building Investment Corporation (LBIC) with the Company and is therefore qualified to benefit from the mortgage loan refinancing roles of Nigeria Mortgage Refinance Company (NMRC).

“The Lagos Affordable Public Housing (L.A.P.H.) home ownership initiative and this collaboration is an opportunity for the State and its citizen to leverage on the benefits available under Nigeria Mortgage Refinance Company (NMRC).

“The refinancing agreement will assist the supply side as well as the demand side of the value chain as it will set in motion a revolving pool of funds for mortgage origination which will assist developers and provide them access to construction finance and help scale up housing delivery,” he said.

Lawal said the refinancing agreement would also avail citizens of the State the affordability and accessibility that NMRC provided through the refinancing of long-term mortgages, thereby unlocking its multiplier effects on the State’s strong economy, including jobs and wealth creation.

“Examples of these efforts include the effective re-positioning of housing provision institutions in the State and the successful implementation of the Rent-To-Own scheme which has driven the growth of the sector and enabled many Lagosians realize their dreams of affordable home ownership,” he added.

The commissioner said the MOU would trigger a programme that could be tagged: “Home Ownership Made Easy.”

“I make bold to say that by this singular step Lagos State under the administration of Governor Akinwunmi Ambode has taken another giant step towards making housing readily available and accessible for the citizens of Lagos State,” he said.

Managing Director and Chief Executive Officer, NMRC, Prof. Charles Inyangete described the MOU as a watershed that would lead to housing revolution in Lagos State.

He commended Governor Akinwunmi Ambode for driving the initiative through the Ministry of Housing, saying that the MOU would lead to the delivery of affordable houses to the masses through the mortgage system, saying that the NMRC would bring about the refinancing option.