FMDQ to reduce Nigeria’s housing deficit, signs MOU with NMRC
Poised to reduce Nigeria’s housing deficit through the debt capital market, FMDQ OTC Securities Exchange has signed a Memorandum of Understanding (MOU) with NMRC.
This is coming on the heels of the Regulatory Supervision Collaboration Agreement, which the Exchange recently executed with the National Pension Commission, to promote enhanced and efficient pension fund governance, regulation and supervision.
Speaking during the ceremony, held in Abuja on Wednesday, the Managing Director of NMRC, Professor Charles Inyangete commended FMDQ for its immense contribution to the development of the Nigerian debt capital market (DCM), noting that the MOU executed with the Exchange demonstrates NMRC’s commitment to deepening the DCM.
According to the Managing Director of FMDQ, Bola Onadele, the need for effective cooperation and collaboration between FMDQ and NMRC cannot be overemphasised, as the partnership would mark an essential step towards the development of the Nigerian housing sector through the introduction and deployment of initiatives aimed at launching a range of mortgage products.
The partnership would also enhance the articulation of strategies for developing the Nigerian mortgage industry through non-interest finance (e.g. Sukuk); partnership on awareness programmes, investor/market education and capacity building in Nigeria; the expansion of listing opportunities for NMRC debt securities among others.
These initiatives, according to him, are geared towards engendering market confidence and allowing NMRC to effectively connect the Nigerian mortgage industry to the DCM; and collaboration on pricing methodology, valuation framework and index development for mortgage bonds.
He explained that FMDQ, in partnership with NMRC and other key stakeholders, will engage in relevant initiatives and campaigns to educate the market on mortgage-related debt instruments such as Mortgage-Backed Securities, Real Estate Investment Trusts, among others, in readiness for the ensuing housing revolution which the Nigerian market is positioned to experience.
He added that Nigeria’s housing crisis is undoubtedly treading a path towards resolution, with institutions like NMRC, putting in place the necessary requisites for vibrant primary and secondary mortgage markets, and FMDQ, providing the necessary DCM support, collaboratively, the ultimate goal of developing the Nigerian economy would be achieved.