Nigeria to Launch $650 Million Low-Interest Mortgage Fund
Nigeria is set to introduce a $650 million low-interest mortgage fund aimed at promoting home ownership and kickstarting a construction boom in the country. Finance Minister Wale Edun announced that Nigeria has secured a 40-year, 1% interest loan from the World Bank’s International Development Association for the initial phase of the program. The government will also collaborate with private-sector entities such as pension funds and banks, who will contribute a total of $162.5 million to the fund. Edun further disclosed that the mortgages provided through this initiative will come with single-digit or low double-digit interest rates and will have a repayment period of 25 years.
This initiative comes at a time when a large percentage of Nigerians are renters, and the majority of home purchases are made in cash due to limited access to affordable financing options. By offering accessible and affordable mortgages, the government aims to revolutionize the housing market in Nigeria and stimulate economic growth in the process.
Source: SEMAFOR
