Nigeria will establish a $650 million low-interest mortgage fund to boost home ownership and ignite a construction boom in the world’s most populous black nation. According to Minister of Finance Wale Edun, the country has secured a 40-year, 1% interest loan from the World Bank’s International Development Association for the program’s first phase. This will be matched by private-sector contributions from pension funds and banks for a total of $162.5 million. Edun also revealed that the mortgages will offer single-digit or low double-digit interest rates and will be repaid over 25 years. With most Nigerians currently renting and home purchases typically made in cash due to limited access to affordable financing, this initiative could transform the housing market and stimulate economic growth.
Source: SEMAFOR
