Nigeria commits $9.4m in Shelter Afrique, becomes second-largest shareholder
The Federal Government has committed $9.4 million to pan African housing development financier, Shelter Afrique (SHAF), which is owned by 44 African governments, African Development Bank (AFDB) and Africa Re.
The contribution moves Nigeria to the second largest in the organisation with 14.77 percent of the shareholding, behind Kenya with 14.87 percent and ahead of the AFDB at 14.28 per cent.
SHAF is currently considering a $3 million equity participation in the newly created Nigeria Mortgage Guarantee Company (NMGC) having already been instrumental to the creation of the Nigeria Mortgage Refinance Company (NMRC).
Nigeria will also benefit from housing finance. The projects being considered are a public-private-partnership with the Kaduna State 60,000 homes, which is anticipated to create 300,000 jobs. The organisation is also in the final stages of providing lines of credits totaling $16 million to two Nigerian banks to create mortgages that will directly impact 4,700 Nigerians.
The organisation confirmed the receipt of $9.4 million as part of Nigeria’s capital subscription. The relationship between Nigeria and the institution has been growing in recent years; Nigeria hosts the West African regional office.
The housing financier confirmed that it had also received capital contributions from other countries; it has received a total of $16 million so far from Lesotho, Mali, Namibia, Nigeria, Rwanda Uganda, Togo and Swaziland.
Shelter Afrique Managing Director, Mr. Andrew Chimphondah said, “We are grateful to the Nigerian government for their continued support and the importance they have placed on affordable housing; we are especially grateful to the Minister for Works and Housing, Babatunde Fashola and the Minister for State, Abubakar Aliyu.
“Nigeria has continued to play a leading role in the organisation, beyond just capital contribution we receive active shareholder participation and guidance through the board member,” he said.
Chimphondah said: “It is especially heartening to see in this age of nationalism that our African countries embrace multilateralism and Pan-Africanism as we collectively seek to address African challenges. Countries like Nigeria, historically, have always been at the forefront of such activities.”
While commending the support the organisation continues to receive from its member countries; he was especially appreciative of the role Nigeria plays in the organisation.
Speaking on the current pandemic, Chimphondah noted that Shelter Afrique has been leading the advocacy for housing and infrastructure spending as a tool for post-COVID economic recovery.
“We believe that every crisis offers opportunities and construction of housing is a critical path to recovery after Covid-19. Traditionally, governments have invested in large infrastructure and construction projects, capital projects to stimulate the economy. We want to see this practice adopted in Nigeria,” he said.
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