Real Estate and home finance industry leaders unilaterally agreed that a multidimensional approach involving public-private partnerships on different fronts is required o bridge the budget deficit at the Alpha Mead 2.0 Market Focus Series recently.
At the webinar themed “Funding Your Home with Government Mortgage Support”, stakeholders agreed that the COVID-19 induced economic realities necessitate that innovative approaches to funding and accessibility are required to provide truly affordable homes.
Buttressing the need for affordable homes to cater to the national housing needs, the Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Arc. Ahmed Dangiwa stated: “The United Nations estimates that global population will reach almost 8.6billion by 2030, and of an estimated 3billion will require new housing and basic infrastructure by then. However, with the overwhelming support by the private sector in delivering affordable houses globally, the public sector therefore have a critical role to play in providing funding.”
He detailed the remarkable contributions the apex mortgage bank has made in providing accessible funds for the construction of affordable homes saying: “ Within 6 months of this administration’s inauguration, we identified this issue and held a corporate retreat with all departments to review the process.
The activity led to a reduction in the average number of days to access the loan from 180 down to 88. How we did this is by ensuring final loan approval; coincides with our board meeting which holds quarterly.
Another improvement in the processes of the FMBN can be seen in the areas of disbursement and refund. The bank disbursed ₦130 billion within the last 25 years from 2017, however, since we took over in 2017, a total disbursement of the same ₦130 billion has been made. With regard to refund, a total of ₦11 billion was refunded in 25 years prior to our inauguration, but since 2017 till date, a total of ₦30 billion have been made so far.”
Speaking on the new dimensions and factors that come to play in the housing dilemma, The Group Managing Director of Alpha Mead, Engr. Femi Akintunndemaintained: “Shelter has assumed new heights of importancewith Covid-19 drastically changing the narrative of how we live, work and play.
Now that we currently live in an era of volatility, uncertainty, complexity and ambiguity (VUCA), it is necessary that we keep exploring all possibilities to adequatelky cater to the housing needs of the nation.
Nigeria is admittedly short of the required numbers to make the housing-for-all which is a component of the SDG goal 11, nevertheless, stakeholders from both private and public sector are contributing their quota to meet the achievement of this goal. It is for this reason that organisations like Alpha Mead are constantly on the look out for credible partners in different areas to fast-track the drive.”
The webinar which is designed for existing and prospective homeowners, companies, cooperatives and group of individuals had a handful of investors in attendance who were interested in knowing where to invest their funds. The Managing Director of Alpha Mead Development Company (AMDC), DamolaAkindolireresponded saying: “Urban centres will always continue to take priority over sub -urban centres.
Real estate is most profitable for those who take advantage of virgin opportunities; watch the level of infrastructural development the govermet is making in those places and then you will be able to take advantage of the capital appreciation. The two main cities with high real estate potential in Nigeria at the moment are Lagos and Abuja.
Despite this information, one must be aware of the the particular locations to invest – in Lagos, the most prime investment locations are between Ajah and Epe, and Mowe-Ofada; in Abuja, areas like Lugbe, Gwarimpa and their suburbs are showing high promise.”
AMDC remains the only development company certified to international standards (ISO 900:2015) and in parnersgip with key players across the homeownership value chain including several Primary Mortgage Institutions (PMIs) and the FMBN.
Commenting on the new innovation that PMIs like his are deploying to provide more accessible houses and contribute to economic recovery, the Executive Director of AG Mortgage Bank Plc, Simon Ogwu narrated: “Reaching out to the unbanked to put them under cooperative and union umbrellas, and structure housing loans for them in partnership with the Federal Mortgage Bank of Nigeria.
Once that is done, the next stage is selecting a developer and we a strategic partnership with Alpha Mead as the titles they have provided overtime are in perfectable stage and their delivered products have also been in good condition.”
AMDC are the developers of Lekki Pearl Estate, the only residential estate in Nigeria certified to the World Bank’s International Finance Corporation’s EDGE-Advanced standards. Besides the Lekki Pearl Estate, the company also has an affordable monthly homeownership product called Green Park Estate. At Green Park Estate customers can own a home with as little monthly contribution as N50,000.
They are also guaranteed access to the National Housing Fund (a product of FMBN) mortgage of up to N15million payable over 25 years at an unbeatable 6% interest rate. The company also has products for customers who may be interested in monthly home rental, real estate crowdfung and landed investment.