MiDA Advisors, Nigeria Mortgage Refinance Company (NMRC), and Standard Bank Group have announced a landmark $228 million blended finance deal aimed at bolstering mortgage refinancing in Nigeria. The transaction is expected to strengthen the availability of long-term mortgage financing and support the growth of affordable housing for low-income earners across Nigeria.
The initiative seeks to provide affordable housing loans to over 250,000 Nigerians, addressing the country’s growing housing deficit while simultaneously creating related employment opportunities.
The new funding is set to empower NMRC to provide long-term capital to Primary Lending Institutions (PLIs), allowing them to refinance and offer affordable mortgage loans to eligible borrowers. The financing package includes a $200 million loan from the U.S. International Development Finance Corporation (DFC) and $28 million from local financial markets, arranged by MiDA Advisors and Standard Bank IBTC Capital Limited. Both institutions are acting as joint lead advisors on the transaction.
Nigeria has long struggled with limited mortgage access for its rapidly growing population, particularly for low-income earners. By partnering with U.S.-based MiDA Advisors and Johannesburg-headquartered Standard Bank Group, NMRC aims to close this gap. The joint effort will create a structured finance solution to mobilize long-term capital for mortgage loans, thereby boosting liquidity in Nigeria’s mortgage finance sector.
The loan proceeds will be allocated to PLIs, which will then refinance qualifying mortgage loans across the country. NMRC’s Managing Director and Chief Executive Officer, Kehinde Ogundimu, emphasized that this deal will significantly enhance the mortgage ecosystem in Nigeria. “This transaction will certainly enhance our efforts to provide affordable long-term housing finance in a manner that will impact the overall sector,” he stated.
Ogundimu noted that at least 20% of the loan proceeds will target low-income and informal market borrowers, with an estimated 40% of the refinanced mortgages earmarked for women as borrowers or co-borrowers.
With the Nigerian housing sector still grappling with a supply shortfall, this agreement is seen as a vital step toward expanding access to affordable housing, thereby driving socio-economic growth. “The keen focus on low-income earners, the informal sector, and women is indicative of the direction of our efforts,” Ogundimu added, reiterating NMRC’s commitment to equitable access to housing finance. “We are committed to driving equitable access to housing credit facilities, thus enabling vulnerable Nigerians to achieve their homeownership dreams.”
MiDA Advisors has long been at the forefront of facilitating large-scale financing solutions in Africa. The financial advisory firm, established under a cooperative agreement with the U.S. Agency for International Development (USAID), has successfully mobilized over $2 billion in blended finance solutions across Africa and other emerging markets. The firm’s Chief Executive Officer, Aymeric Saha, highlighted the significance of the transaction. “This landmark transaction marks a turning point in financing affordable housing in Nigeria. MiDA Advisors is proud to partner with NMRC and Standard Bank Group to enhance liquidity needs in Nigeria’s affordable housing sector.”
Saha pointed out that MiDA Advisors has, since its inception during the 2016 U.S.-Africa Leaders’ Summit, made strides in mobilizing finance for infrastructure projects across the continent. “Through this transaction, MiDA demonstrates once again the power of partnerships with Africa’s leading companies to address social infrastructure financing needs in the region.”
Standard Bank Group, Africa’s largest banking group by assets and operations, also hailed the deal as a breakthrough in advancing the continent’s socio-economic development through sustainable investment. The group’s Chief Executive of Corporate and Investment Banking, Luvuyo Masinda, emphasized the transaction’s long-term benefits for the Nigerian economy, particularly in addressing the chronic housing shortage. “This transaction demonstrates the bank’s commitment to driving Africa’s socio-economic development through the facilitation of sustainable investment on the continent,” Masinda said.
“We understand the needs and challenges of Africa’s people and continue to deliver innovative solutions to address these,” Masinda added, expressing optimism that the deal will deliver much-needed housing solutions to Nigeria while stimulating economic growth. The loan will support projects that aim to reduce poverty and improve the living conditions of vulnerable populations, all while fostering financial inclusion through access to housing credit.
The collaboration between MiDA Advisors, NMRC, and Standard Bank Group comes at a crucial time for Nigeria, where housing demand continues to outstrip supply by millions of units. As the country seeks to address its housing challenges, this new transaction represents a milestone in efforts to unlock financing and build a more inclusive housing market.
The stakeholders believe that the transaction will serve as a model for future public-private partnerships in Africa’s housing sector, mobilizing both local and international capital to drive sustainable development.
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