31 January 2013

Nigeria: SEC Plans Mortgage, Agric Financing Products

The Securities and Exchange Commission (SEC) yesterday unveiled plans to introduce products into the Nigerian capital market that would address the problems of mortgage, agriculture and infrastructure financing in the country.

Director General of the commission, Ms Arunma Oteh said this in Abuja during a chat with newsmen.

She said a three day workshop to build capacity of members of staff of the commission in area of securitisation, mortgage backed securities, covered bonds and liquidity facility was being held in Abuja.

This would enable the federal government to come up with a framework on securitisation which would not only deepen the market, but also form a critical aspect of the transformation agenda of President Goodluck Jonathan.

She said, "There is a great recognition in the country that the Nigerian capital market is important for long term financing.

"We must have a market that engenders confidence and we believe it's critical to bridge the gaps in medium to long term financing for housing, infrastructure and agriculture and that is why we are doing this."

Oteh rued the presence of only 20, 000 mortgages in the books of banks in Nigeria noting that the figure was too low when considered from the standpoint of the importance of mortgage to mass housing.

She said apart from the securitisation product, a Nigerian Mortgage Facility which is being coordinated by the Minister of Finance would be unveiled before the end of the year.

The facility, she noted, would assist the country to increase mortgages from the current 20, 000 to about 200, 000.

She said the facility, when unveiled would also help to reduce the cost of interest rate for the housing financing.

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