The roll-out drum sounds in celebration as the Nigeria Mortgage Refinance Company (NMRC) marks a decade of revolutionizing mortgage refinancing in Nigeria.
Over the past 10 years, NMRC has played a pivotal role in enhancing liquidity in the mortgage sector, advocating for key policy reforms, and setting new standards in mortgage lending.
As stakeholders reflect on the journey so far, commendations pour in for the visionaries behind NMRC’s establishment, while calls for further government support and economic improvements echo to ensure the full realization of its mandate.
The Housing Development Advocacy Network (HDAN) has also reacted, congratulating NMRC on this milestone. In a statement released in Abuja, the Executive Director of HDAN, Festus Adebayo, extended warm congratulations to all partners who contributed to the mission’s success.
He specifically commended those behind the initiative, Minister Dr. Ngozi Okonjo-Iweala, the Central Bank of Nigeria, the Mortgage Bankers Association of Nigeria (MBAN), and advocates who championed the cause from its inception. It is our hope that one day this country will be ripped for laudable ideas like this.
“We also congratulate ourselves because we are part of it, a key to the mission. Today, we celebrate all those who saw the vision and worked towards it,” Adebayo said.
Looking back on NMRC’s journey, Adebayo acknowledged that while the company may not have fully realized its core mandate of refinancing becos we cannot see the mortgage being created , its progress over the years offers optimism for the future.
“This is not a time for criticism but a time to look at what they have done and what they need to improve on. We are calling on all stakeholders, especially the government and the Central Bank of Nigeria, to ensure that NMRC evolves to meet its mandate more effectively,” he added.
He also called for mortgage banks to take up a more proactive role in creating a thriving mortgage sector that aligns with NMRC’s objectives.
Adebayo expressed gratitude to the first generation of NMRC’s board and management, including pioneers such as the former Chief Executive Officer, Professor Charles Inyangete, and Dr. Chii Akporji, among others, for their invaluable contributions. He urged them to step forward once again with fresh ideas to propel NMRC into the next phase of innovation and impact.
Since its incorporation in June 2013, NMRC has recorded several landmark achievements. In its formative years, NMRC secured a $250 million International Development Agency (IDA) loan from the World Bank to enhance its mortgage refinancing capacity. By 2014, the company launched officially, appointed an interim CEO, and published the Final Draft Uniform Underwriting Standards, setting a regulatory framework for mortgage lending in Nigeria.
NMRC made significant progress in 2015 when it successfully issued its first 15-year N8 billion bond and obtained a final operating license from the Central Bank of Nigeria. This was followed by the execution of the Federal Government Guarantee Agreement and the receipt of the second tranche of the World Bank loan.
The company continued its momentum in subsequent years, rolling out a fully customized internet-based Mortgage Market System (MMS) in 2016 to improve operational efficiency in the housing finance sector.
The impact of NMRC extended beyond financing as it actively engaged in policy advocacy. In 2017, NMRC facilitated the signing of Memorandums of Understanding (MOUs) with several states on the Model Mortgage and Foreclosure Law (MMFL), with Kaduna State pioneering its passage into law.
The following year, NMRC, in collaboration with the Central Bank of Nigeria (CBN), MBAN, and other stakeholders, developed and launched Uniform Underwriting Standards for the informal sector, a crucial move aimed at expanding mortgage access to a broader segment of the population. That same year, NMRC issued another 15-year N11 billion bond and secured the third tranche of the World Bank loan, reinforcing its commitment to long-term mortgage financing in Nigeria.
Over the past decade, NMRC’s influence has been evident in key achievements such as:
- Successfully raising billions of naira from the capital market through long-term bond issuances, including the landmark N8 billion bond in 2015 and the N11 billion bond in 2018.
- Driving mortgage standardization with the introduction of Uniform Underwriting Standards for both formal and informal sectors, thereby increasing confidence among lenders.
- Deploying cutting-edge technology, such as the Housing Market System (HMS) and the Mortgage Market System (MMS), to enhance transparency, efficiency, and accessibility in mortgage financing.
- Pushing for enabling laws such as the MMFL to create a legal framework for efficient foreclosure processes, which is essential for investor confidence and mortgage sector stability.
- Forging strategic partnerships with international institutions such as the World Bank and the U.S. International Development Finance Corporation to attract funding and technical support for Nigeria’s housing finance market.
As NMRC enters its second decade, stakeholders are optimistic about the future. While challenges remain, particularly in ensuring that mortgage financing reaches a larger proportion of Nigerians, there is renewed confidence that with stronger government backing, improved economic conditions, and continued innovation, NMRC will achieve its vision of making homeownership more accessible and affordable.
The next phase for NMRC will require deeper collaboration among stakeholders, sustained policy advocacy, and enhanced financial mechanisms to further unlock Nigeria’s vast housing potential.
The celebration of NMRC’s 10th anniversary is not just a recognition of its past achievements but also a rallying call for more concerted efforts to drive mortgage financing in Nigeria to new heights.
With the right support and continuous innovation, NMRC is well-positioned to cement its role as a cornerstone of Nigeria’s housing finance ecosystem.
