Federal Mortgage Bank of Nigeria (FMBN) is set to inject $1.5 billion (about N225 billion) loan facility into the mortgage sector that will enable Nigerians have easier accessibility to housing loans.

This  follows the approval by the Federal Government for the board of the bank to source the facility from the international capital market in the form of a Euro medium-to-long term loan facility, through the London-based global bank, the HSBC Group.

Managing Director, FMBN, Mr. Abdulsalam Ahmed, disclosed this last week, when the board of FMBN along with representatives of HSBC, visited the Minister of Works, Housing and Urban Development, Dr. Hassan Muhammad Lawal, in his office in Abuja.

Ahmed said that the bank had met in London previously to negotiate with HSBC on the Euro medium-to-long term issuance facility, and that the negotiations had reached advanced stages. He said that the facility is a platform that will enable FMBN to issue bonds on a very regular basis, and more efficiently, adding that the deal with HSBC was an opportunity for FMBN to access the international capital market, and this will link the local capital market with the international capital market.

In his response, the Housing Minister asserted that Nigeria is a right and proper place for foreign investment, noting that the deal between FMBN and HSBC was a major breakthrough which would ensure the inflow of international financing from the international capital market for housing delivery in Nigeria.

“I want to reaffirm that this government will do all within its powers to create the enabling environment, whereby funds will be made available within a limited short period of time, so that people can build their houses. You don’t have to wait for government to build your house for you.

Nigeria has the largest market in Africa, the largest population in sub-Saharan Africa, and is the largest black nation on earth. We are one of the most viable countries on the continent of Africa, not only in terms of population, but in terms of natural resources,” Lawal stated.