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Nigeria needs robust Debt Capital Market, says Prof Inyanete

ABUJA  – The Managing Director of the Nigeria Mortgage Refinance Company (NMRC), Prof. Charles Inyangete, yesterday, advocated a more conducive policy and regulatory environment for a robust Debt Capital Market, in the country.

Nigerian Stock Exchange

According to him, this would attract more domestic and international investors, increase the market’s financial depth and strengthen its capacity to provide the multi-billion-naira/dollar long-term financing that is required to address the country’s housing deficit.

Prof. Inyangete spoke at the just-concluded FMDQ 2017 Nigerian Debt Capital Markets Conference in Lagos.

While acknowledging the positive strides being recorded by NMRC in increasing home ownership, he expressed concern that the company’s N440 billion Bond Issuance Program to fund its refinancing activities remains grossly inadequate.

He, therefore, called for stakeholders to take actions that would help deepen the Debt Capital Market, considering its pivotal role as an effective financing enabler of infrastructure development.

The NMRC boss added that a more vibrant Capital Market is critical because it serves as the main source of funds that NMRC uses to make housing affordable for Nigerians.

His words: “In connecting mortgages to the capital market, we are finding that we need to have the mortgages in the first place. So, housing stock is important and of course the structure to support housing is also crucial.

“A housing deficit of 360 billion dollars as estimated by the Center for Affordable Housing Finance in Africa requires Nigeria to invest annually in the region of 3.5 trillion for housing. If you take the infrastructure such as power, water, access roads, to support that, you are looking in the region of 900 billion annually.”

Such funding he said can only be sourced from the Capital Market whose foundation is anchored on transparency, accountability and strong governance.

As a company with the mandate to link home ownership through mortgages to the capital market, Prof. Charles Inyangete stated that NMRC has embraced the responsibility of driving a process of creating a mortgage environment that is suitable to promoting home ownership.

By accessing long-term funds at affordable market rates to refinance mortgage loans that are provided by primary mortgage lenders, NMRC is able to increase liquidity in the market and in the process help extend the repayment period for mortgage loans for as long as 20 years. NMRC has used over N8billion raised from the capital market to refinance mortgages for several primary mortgage institutions.

He stated that NMRC has built the Mortgage Market System (MMS), an eco-system that links the entire housing value chain which was launched earlier this year and developed an underwriting standard which the market is adopting as a basis for processing mortgages.

By accessing long-term funds at affordable market rates to refinance mortgage loans that are provided by primary mortgage lenders, NMRC is able to increase liquidity in the market and in the process help extend the repayment period for mortgage loans for as long as 20 years. NMRC has used over N8billion raised from the capital market to refinance mortgages for several primary mortgage institutions.

The conference was hosted by FMDQ OTC Securities Exchange. It brought together national and international influential financial market participants and industry experts that provided insights into current trends, development opportunities.


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