LEVERAGING TECHNOLOGY TO INTEGRATE A FRACTURED HOUSING MARKET:
NMRC leverages technology and business process innovation as pivotal tools for building a modern housing finance market for Nigeria.
In line with the mandate to remove barriers to homeownership and build a sustainable culture of efficiency in the Nigerian housing market, NMRC deploys its deep knowledge and understanding of the industry to introduce new technological innovations and processes that are at par with global standards.
Since NMRC commenced operations in 2015, we have recorded significant milestones in this direction.
NMRC’s Housing Market System
NMRC’s Housing Market System is Nigeria’s first mortgage management technology infrastructure proffering an end-to-end solution for the housing finance market in Nigeria. The system is designed to address the barriers created by the cumbersome processes surrounding home ownership in Nigeria.
The HMS infrastructure integrates the financing operations of the key components of the entire housing value chain from construction finance, to primary mortgage origination and administration to secondary market mortgage refinancing.
By enabling the seamless integration of all stakeholders in the housing finance ecosystem, their business systems and processes, the HMS enhances the efficiency of operations of the housing finance sector, deepening the market and growing access to affordable home ownership in Nigeria.
NMRC’s HMS also integrates a Mortgage and Housing Market Information Portal (HMIP) to help address the critical gap in credible data on the mortgage and housing market in Nigeria. Developed in collaboration with the National Bureau of Statistics (NBS), the Central Bank of Nigeria (CBN), Federal Mortgage Bank of Nigeria (FMBN) and Mortgage Banking Association of Nigeria (MBAN), the portal is the go-to technical platform that provides an interface for easy access to real-time and live information on housing finance, property development and ownership.
Blockchain-powered Technology System for Reliable Land Titling
NMRC has also tapped blockchain technology’s capacity for tamper-proof record keeping, to build a robust national asset registry system for driving real estate transactions. The innovative platform, built for homebuyers, land service providers, banks, and property developers eliminates cases of double titles for the same piece of land by ensuring that information on verified land titles are stored in immutable digital registries and constantly cross-checked by a network of computers.
Some of the key benefits of the block-chain powered registry system include creating a single source of truth of ownership status to guarantee title authenticity and reliable online title verification. It also ensures transparency of land titles, reduces potential for land disputes as well as the costs and transaction time for land processing.
National Real Estate Collation Initiative
NMRC is working with market stakeholders to create a National Real Estate Data Collation & Management Program (NR-DCMP) that will provide industry-wide data on real estate activities in Nigeria. The program is specifically developed to create a data repository on real estate and housing development across different value chains for use by policy makers, investors and the Nigerian public. The information will include administrative data, activities of housing developers and the affordability of off takers clustered by their states of operations.
Stakeholders on the project include the Real Estate Developers’ Association of Nigeria (REDAN), Central Bank of Nigeria (CBN), Federal Mortgage Bank of Nigeria (FMBN), Nigeria Mortgage Refinance Company (NMRC), Federal Ministry of Power, Works and Housing (FMPWH), National Population Commission (NPopC), Gesellschaft für Internationale Zusammenarbeit (GIZ), the Growth & Empowerment Program (GEM) of the Federal Ministry of Industry, Trade & Investment (FMITI), National Bureau of Statistics (NBS), and the Value Chain Consultants.
NMRC’s Housing Market Information Portal, HMIP, will host the data and provide the dashboard and executive reports for decision making.
The Nigeria Mortgage Refinance Company(“NMRC”) is a Public Private Partnership arrangement between the Federal Government of Nigeria and private sector. It is a component of the Nigeria Housing Finance Programme initiated by the Federal Ministry of Finance in collaboration with the Central Bank of Nigeria (“CBN”), Federal Ministry of Lands, Housing & Urban Development (“FMLHUD”) and the World Bank/IFC.
The Nigeria Housing Programme seeks to address the key barrier to developing accessible and affordable housing in Nigeria. It is designed to be implemented with parallel funded projects in land registration and construction sectors by the DFID and GIZ (Deutsche Gesellschaft fur Internationale Zusammenarbeit GmbH).
NMRC provides mortgage-lending institutions with access to long-term finance at an affordable interest rate, thereby enabling mortgages to be issued by these institutions to Nigerians, at longer tenors and affordable rates. The provision of mortgage loans at longer tenors will provide the average working Nigerian citizens an opportunity to buy a home and conveniently pay for it.
The World Bank approved a concessional US$300 Million 40-year interest free International Development Association (IDA) loan to facilitate the execution of the Housing Finance Programme. US$250 Million of the IDA loan was disbursed in instalments to NMRC as Tier 2 Capital based on key performance indicators — it will be retained on NMRC’s balance sheet to provide credit support for NMRC’s bond issuances.