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 a part of the Nigeria Housing Finance Programme (NHFP), financed by the World Bank, the Federal Government intended to support the development of formal microfinance products for housing purposes. These products were targeted towards the lower end of the market thus matching 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. However, designing new products was only a part of the support the Frankfurt School team provided to MFBs.
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:
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.