Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Standard view
Full view
of .
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
The Need for Local Currency Fixed Income Markets.2008.11.25

The Need for Local Currency Fixed Income Markets.2008.11.25

|Views: 18|Likes:
Published by cobihara
paper presented at govt level
paper presented at govt level

More info:

Categories:Types, Research
Published by: cobihara on Jan 28, 2011
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PPTX, PDF, TXT or read online from Scribd
See more
See less





Mortgage Finance andlocal currency bondmarkets in Nigeria.
Chidi Oti-Obihara
NEX RUBICAadvisory
NEX RUBICA advisory
Nigeria’s Mortgage market
Nigeria is the most populous country in sub-Saharan Africa - circa 140 million and growing ata rate of about 2.83% per annum.
 There are few reliable housing statistics available (financial system strategy draft report2020). Some level of research has been undertaken by different bodies in an effort toestimate current housing stock and potential deficit.
It is estimated that about 64% of the population currently resides in the rural areas wheresocial amenities and infrastructure are inadequate. Exacerbating continued rural urbanmigration.
 The US – Nigeria Development Institute puts available housing stock in Urban Nigeria at10.7m units, out of which it is estimated that less than 5% is in the formal mortgagesystem.
 The World Bank estimates that the current national housing deficit ranges between 12 – 16million housing units. Similarly, a study by the Federal Mortgage Bank of Nigeria, whichis the apex mortgage institution in the country, indicates that about N12 trillion will berequired to meet the shortfall in Nigeria’s housing needs, which is currently put at about12 million units.
Internal research by World bank project team estimates the annual housing need of thecountry at between 500,000 – 1,000,000 units when the existing shortfall is met, at therate of urbanization. All these estimates point to a very large housing supply deficit inboth the rural and urban areas that need to be addressed in a structured manner toincrease existing housing stock.
Nigeria’s growing population coupled with the increasing rural urban drift will further serve toacerbate the size of the potential housing deficit over the short to medium term andaddressing the housing need of Nigeria will require huge financial resources ranging inthe tens of trillion naira.
 Therefore, promoting the development of a viable housing Finance Market is the answer tonot only making housing accessible to a greater percentage of the population, but alsothe development of the Nigerian economy. The challenge is how to mobilize/release thecritical amount of funds required to jumpstart start the process.
NEX RUBICA advisory
 The bank sector and its fundingsources
, ( )
According to the C entralBank ofN igeria the totalam ount ofinvestible funds available to the existing 81 eighty one
. , %
prim ary m ortgage institutions w as N 36 7 billion and only N 22 billion or 60 ofthis am ount stands a
reasonable chance ofbeing channeled for m ortgage loans origination

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->