The Managing Director of AG Mortgage Bank, Mr Ngozi Anyogu, has declared that deficiency in supply is the reason for the persistent housing deficit in Nigeria.
He spoke in Lagos during the signing of a N2,000,000,000 seven-year fixed rate note issuance between AG Funding SPV Limited and WealthBridge Capital Partners Limited.
Anyogu, who is the bank’s Chief Executive Officer, also pinpointed that Nigerians build houses to own rather than transfer.
While calling for the citizenry to instill a steady house trading attitude to close the gap, he also said financial institutions must take steps in funding construction to bridge the deficit.
Anyogu said: “One of the housing problems in Nigeria is the weakness on the supply side. If there is nothing on house supply, there will be nothing on which to do house mortgage. What we do is to step out, do the funding on construction and exit by mortgage.”
He added that by the steps AG was taking to fund construction, “we can only do that by increasing our total asset base because the amount of funding we can provide is limited by our total assets. We can only fund 25 per cent of our assets on construction finance,” saying: “The only way the gap can be closed is by building more houses. The culture here is direct purchase and owning of properties. One of the reasons we have shortages in housing is because we build to own.”
On his part, Group Managing Director/Chief Executive Officer at WealthBridge Group, Mr Ahmed Lawal, said: “WealthBridge is pleased to support AG Mortgage Bank PLC in its quest to provide superior services and create assets for its clients in innovative ways.
“We have served the bank in an arranger’s capacity previously on a note issuance of N1,500,000,000 to fund the construction of 108 housing units in Enugu in partnership with Enugu State Housing Development Corporation, and AG Mortgage Bank PLC successfully redeemed the notes with all investors fully repaid.
“We are positive that this note issuance will enhance the current base of AG Mortgage Bank’s business lines and assist in absorbing any economic shocks or business uncertainties. There are several noteworthy and innovative developments in the mortgage banking/real estate industry in Nigeria, and we see great potential. In light of these opportunities, WealthBridge is committed to the growth of the industry.”
