DFIs out to assist developers bridge Nigeria’s housing deficit

Encouraged by Nigeria’s  fat  Gross Domestic Product (GDP) size,  growing population, rising urbanization  and a stable demand for mid-income housing, Development Finance Institutions (DFIs) such as Shelter Afrique and Agence Francaise De Development (AFD), are showing  interest in Nigeria’s  real estate market with a view to assisting developers to bridge the country’s  housing deficit.

DFIs are alternative financial institution that play crucial role in providing credit in the form of higher risk loans, equity positions and risk guarantee instruments to private sector investments in developing countries.

The aid by the DFIs which would range from long term loans to equity contribution for project execution, is expected to give succor to real estate providers who are financially constrained in delivering medium and low income housing schemes.

“The active participation of DFIs in real estate funding can significantly infuse standardization into the real estate market and also deepen the financial market more by providing long term funding to institutions, DFIs can also champion engagement with the government  towards formulating real estate finance friendly policies that would consequently help introduce best practice into the market.