call download fax letter pdf search x chevron
"jcr:3f0c7e67-9e06-43e6-90aa-4ff1ff3c8556" (String)
FS logo, person explaining and person writing

Thematic Area:

Affordable Housing Finance

Duration:            

2017 - 2018

Client:                

World Bank / Central Bank of Nigeria

Region:             

Africa

Country Coverage:           

Nigeria

Project Overview

Despite huge demand, most microfinance banks (MFBs) in Nigeria were not offering formal housing microfinance products. MFBs were understandably cautious about venturing into a new line of business that was beyond their current business model, although some MFBs had shown some initial interest in housing microfinance (HMF).

As part of the Nigeria Housing Finance Programme (NHFP), financed by the World Bank, the Federal Government of Nigeria intended to support the development of formal microfinance products for housing purposes. These products were targeted towards the lower end of the market to match the growing demand for housing microfinance.

In accordance with the NHFP objectives, Frankfurt School experts worked closely with four selected MFBs to design and roll-out the HMF products. As an initial step to implement the programme, our experts conducted institutional assessments of the MFBs and set up technical assistance interventions for each MFB individually.

The scope of work conducted by Frankfurt School for the implementation of TA for HMF included the following items:

  • Developing/adjusting HMF strategy;
  • Improving lending operations and internal procedures/policies;
  • Developing/adjusting marketing strategies;
  • Improving ALM and risk management;
  • Pricing of HMF products;
  • Introducing construction technical assistance; and,
  • Training of staff (20 trainings with more than 400 lending and relevant staff participants), etc.

By the end of the TA, the MFBs accessed a credit line totalling USD 15 million (equivalent in the Nigerian Naira) for on-lending to beneficiaries.