📋 Tender Overview
Project Summary
Approval Date 22 Sep 2021
Planned Completion Date 19 Jan 2027
Last Disbursement Planned Date 19 Jan 2027
Sovereign / Non-Sovereign Sovereign
Sector Urban Development
DAC Sector Code 43032
Environmental Category 2
Commitment U.A 42,587,321.75
Status Approved
Project General Description
The Project is an ADB sovereign loan of USD 60 million to the Federal Republic of Nigeria. The funding will be on-lent under a subsidiary loan agreement to the Family Homes Funds (FHF), that will be the Executing Agency for the Project. The Bank’s intervention aims to catalyse provision of long-term local currency mortgage financing by Primary Mortgage Lenders (PMLs) for affordable housing; as well as deepen the housing finance system. It will enhance access to decent housing, private sector development and promote job creation in Nigeria. Indeed, the developmental challenge of access to long-term mortgage financing especially for the lower middle to middle income segment remains significant in Nigeria. The Project builds on and complements related activities of development partners aimed at deepening of the housing finance market and improving access to long term funding in Nigeria. The proposed activities under this Project build on the demand side and complement the FGN ongoing efforts to build a robust housing finance ecosystem. Through this intervention, the Bank seeks to support the FGN’s efforts to operationalize a market-oriented mortgage risk sharing arrangement under the ‘Help to Own’ mortgage financing product of the FHF, the Executing Agency. The implementation period shall be 5 years from the signature date of the Loan Agreement.
Project Objectives
The objective of the Project is to (i) stimulate provision of long-term local currency mortgage financing by PMLs; and (ii) deepen the housing finance system and strengthen linkages between housing finance and capital markets. The Project, through technical assistance grant funding from YEI Multi-Donor Trust Fund, will support a skills acquisition and apprenticeships training for youth artisans to promote their gainful employment in the housing value chain.
Beneficiaries
The direct beneficiaries are Primary Mortgage Lenders (PMLs) that are mainly regulated mortgage lending banks and mortgage finance institutions, and eligible mortgage borrowers. Indirectly, the Project will benefit firms, households and other financial system stakeholders through improved availability and affordability of housing finance, and enhanced linkage with local debt capital markets particularly as regards volume, extended tenor, cost of financing and overall mortgage affordability. The Project will benefit private sector businesses including small and medium-sized enterprises in the housing and related value chains through its contribution to enhanced economic activity in the sector.
Participating Organization
Funding
African Development Bank
