CBN selects MFBs for affordable housing finance

CBN selects MFBs for affordable housing finance
Central Bank Of Nigeria building

 The Central Bank of Nigeria, in a bid to reduce the housing deficit in the country, has selected eight microfinance banks to provide affordable houses for the citizens.

The Head, National Housing Fund Programme of the CBN, Mr. Adedeji Adesemoye, stated this during the second edition of the Housing Microfinance Academy organised by Lafarge Africa Plc in Abuja.

The event themed: ‘Turning reflections into actions’, was organised to enhance the availability of housing finance for low and middle income earners.

So far, over 100 financial institutions from four continents have joined the academy, with Lafarge Africa Plc championing the initiative in Nigeria by implementing the ‘Easy Home’ scheme, which has enabled 20,000 Nigerians to gain access to their homes in three years.

Speaking at the event, Adesemoye said that the selection of the eight MFBs would enable the apex bank to reduce the housing deficit in the country, estimated at about 17 million units.

Adesemoye, who did not disclose the identities of the eight MFBs, said the CBN would support them with product development and technical assistance in the area of construction, adding that these were critical for housing delivery.

He said, “The institutions that will participate are licensed microfinance banks with state or national licences and huge assets that will fully comply with microfinance laws and regulations, as well as prudential and supervisory standards.

“That means they have capital adequacy with robust capital, and we will be looking at the possibility of having tier two capital.”

He said with access to finance, low income earners could build decent homes in good locations.

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