FMDQ Signs MOU With NMRC… Towards Building The Nigerian Housing Sector Through The Debt Capital Market

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Sharing in the objective of the Nigeria Mortgage Refinance Company PLC (“NMRC”) to intermediate long-term funds from the capital market towards the development of the mortgage industry and ultimately bridging Nigeria’s housing deficit through the provision of affordable housing finance, FMDQ OTC Securities Exchange (“FMDQ” or “the Exchange”) has signed a Memorandum of Understanding (MOU) with NMRC. This is coming on the heels of the Regulatory Supervision Collaboration Agreement which the Exchange recently executed with the National Pension Commission (“the Commission”), towards enhanced and efficient pension fund governance, regulation and supervision.

To mark this laudable feat, a Signing Ceremony, where the MOU was formally co-executed was held at the NMRC offices in Abuja. In attendance were the Managing Director/CEO, NMRC, Prof. Charles Inyangete; Managing Director/CEO, FMDQ, Mr. Bola Onadele. Koko and other key management representatives from NMRC and FMDQ.

Speaking during the event, Prof. Inyangete commended the FMDQ for its immense contribution to the development of the Nigerian debt capital market, and noted that the MOU executed with the Exchange demonstrates NMRC’s commitment to deepening the debt capital market.

According to Mr. Onadele, the need for effective cooperation and collaboration between FMDQ and NMRC cannot be overemphasized, as this partnership will mark an essential step towards the development of the Nigerian housing sector through, among others, the introduction and deployment of initiatives aimed at launching a range of mortgage products; the articulation of strategies aimed at developing the Nigerian mortgage industry through non-interest finance (e.g. Sukuk); partnership on awareness programmes, investor/market education and capacity building in Nigeria; the expansion of listing opportunities for NMRC debt securities, thus engendering market confidence and allowing NMRC to effectively connect the Nigerian mortgage industry to the debt capital market; and collaboration on pricing   methodology, valuation framework and index development for mortgage bonds.

FMDQ, in partnership with NMRC and other key stakeholders will engage in relevant initiatives and campaigns to educate the market on mortgage-related debt instruments such as Mortgage-Backed Securities, Real Estate Investment Trusts, among others, in readiness for the ensuing housing revolution which the Nigerian market is positioned to experience.

Nigeria’s housing crisis is undoubtedly treading a path towards resolution, with institutions like NMRC, putting in place the necessary requisites for vibrant primary and secondary mortgage markets; and FMDQ, providing the necessary debt capital market support, collaboratively working towards the ultimate goal of developing the Nigerian economy.