The Central Bank of Nigeria (CBN) approved the draft framework for operating a mortgage refinance company in Nigeria. A circular issued by the Director, Other Financial Institutions Supervision Department of the CBN, Olufemi Fabamwo, states that the framework provides for the "licensing and establishment of a Mortgage Refinance Company (MRC) as a specialised second-tier institution which would provide short-term liquidity, long-term funding and/or guarantees to mortgage originators and housing finance lenders."
The Nigerian Mortgage Refinance Corporation (NMRC) will be established as a PPP arrangement. Partners will include the federal government, Nigeria's local banks and savings & loans institutions, and multilateral institutions. The World Bank intends to provide concessional credits of $300million (N45 billion). At a later stage, NMRC would access the capital markets to raise long-term funds via bond issues.
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