The Nigerian Mortgage Refinancing Company on Tuesday signed a Memorandum of Understanding with Cantor Fitzgerald, a global investment firm with strong expertise in asset backed mortgage securities, for the investment of $1bn (about N200bn) in the Nigerian mortgage sector.
The signing of the agreement, which took place at the headquarters of the Federal Ministry of Finance in Abuja, was witnessed by the Minister of Finance, Dr. Ngozi Okonjo-Iweala.
The Chief Executive Officer, NMRC, Prof. Charles Inyangette, signed on behalf of his company, while the Managing Director, Cantor Fitzgerald’s Debt Capital Markets Division, Mr. Jack Heffernan, signed on behalf of the investment bank.
The pact will enable Cantor Fitzgerald to build 10,000 houses in Kaduna, Lagos, Enugu and Abuja within the next one year.
The firm has already acquired hectares of land in the four states, where it will build houses that will be sold for N8m and N15m, with buyers paying back their mortgage loans over 20 years.
Construction work is scheduled to commence at the sites in April, starting with Lagos State.
Commenting on the agreement, Okonjo-Iweala said that the entry of the investment bank into Nigeria’s mortgage sector was yet another confirmation of the Federal Government’s vision to make affordable housing available to the citizens.