CEOAFRICA gathered that the Federal Government of Nigeria on Wednesday has announced its formal approval and receipts of a $300 million (#48.6 billion) loan facility from the International Development Association (IDA) of the World Bank to kick-start the Nigeria Mortgage Refinance Corporation (NMRC) due for launch this month.

According to source, the IDA loan, a World Bank soft credit comes at a zero percent interest rate with a 0.4 percent service charge and a moratorium period of 40 years.

The loan which is specifically to be devoted to the establishment of the mortgage refinancing  in company being championed by the Ministry of Finance, as well as strengthening other institutions that will drive the mortgage ventures in the country was announced after the Federal Executive Council meeting yesterday.

The company which already has the approval of the Central Bank of Nigeria (CBN) to set up, will provide low interest housing loans to middle-income earners in the country to enable them own their own homes.

MRC is expected to bridge the current housing gap in Nigeria by raising mortgages from an annual 20,000 to a least 200,000 in the next three years.

President Jonathan said that the company, (NMRC) will be established under a public private partnership (PPP) arrangement and the partners would include the federal government, Nigeria’s local banks and savings and loans institutions, especially the World Bank which is providing concessional credit of $300 million.