Adenigi Akanlusi, the President, Mortgage Bankers Association of Nigeria, has identified lack of access to long-term funds as an hindrance to effective operation of mortgage lending in Nigeria.
Akanlusi told the News Agency of Nigeria in Lagos on Friday that mortgage banks in Nigeria lacked support and adequate funding that could enable them to achieve set mandates.
According to him, many mortgage banks cannot offer long-term mortgage loans of about 20 years or more.
He said: “They have also cannot offer single digit interest rate because they refinance the loans with short-term funds.
“Housing projects are long-term projects that require long-term funding.
“But the problem with the mortgage market is that of using personal funds and loans from commercial banks, which are short-term funds in nature to finance mortgage loans.
“This is a miss-match and until the issue is properly addressed, the nation’s mortgage market may not record remarkable growth.’’
He, however, commended the Nigeria Mortgage Refinance Company for its efforts in providing the mortgage banks with long-term funds to finance the mortgage market.
According to him, there is still need for government’s intervention fund to adequately boost operation of the mortgage market.
He expressed optimism that the nation’s mortgage system would be revived if the government and other stakeholders playd their roles well.
The association president said that access to decent and affordable housing could only be achieved through effective mortgage system.
He, therefore, appealed to the Federal Government to provide long-term funds to mortgage banks so as to make long-term mortgage loans available and ease housing development.
He also suggested that the Federal Mortgage Bank of Nigeria be recapitalised.
Akanlusi also called for simplified land titling process and capacity development of operators in the mortgage market in order to revamp the mortgage system.
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