A China Export and Credit Insurance Corporation, SINOSURE, and International Commercial Bank of China, ICBC, are in Nigeria as part of efforts to invest $6 billion about N948 billion in the country's housing sector.
The Managing Director of the Federal Mortgage Bank of Nigeria, FMBN, Mallam Gimba Yau' Kumo, disclosed this at a Media Round-Table organised by the Nigeria Union of Journalists, NUJ, in Abuja.
Kumo said the investment tour was part of the bank's business expansion initiatives aimed at attracting foreign investors into the capital-intensive sector and by implication, ensure a public private partnership arrangement in its development.
Specifically, the mortgage finance expert disclosed that the FMBN had opened discussions with the two investment entities with a view to securing a single digit loan facility totalling $6 billion for the development of the sector.
He said the loan had a tenor of 15 to 20 years and would be given directly to Chinese Construction companies in the country on disbursement tranches of $1.5 billion basis, adding that the firms would build the houses under the supervision of the FMBN.
Kumo said his bank's responsibility in the housing project would be to create mortgages over the housing units, collect mortgage repayments and use the proceeds of the repayment to pay back the loan.
He said: "As we speak now, a team of the Chinese SINOSURE/ICBC is visiting the country following the series of discussions we had with them in the past and in furtherance of our business expansion drives to encourage private sector involvement in the development of the sector.
"Apart from these Chinese companies, we are also discussing partnership with Globus Financial Services LLC of the United States to access a US $1 billion 10-year facility to finance affordable houses and infrastructure.
"The pilot scheme will involve the FMBN to fund off-takers considered for some Federal and state Governments' institutions.
The FMBN MD listed the institutions targeted to benefit from the scheme as the Nigeria Police Force which would get $100 million; the Federal Road Safety Commission, FRSC ($50 million) and Nigerian Air Force ($50 million).
Others, according to him, include Nigerian Security and Civil Defence Corps, NSCDC ($50 million) and Federal Ministry of Education ($50 million).
The states to benefit from the financing window are Bayelsa, Nasarawa, Rivers, Ekiti, Ogun, Osun and Kano. Each of them will access $50 million.
National Mirror
They are very fond of reasonable initiatives like this. I must kudos the organisers of this one. Good one.