As part of effort to boost the country’s economy and create direct and indirect job opportunities for Nigerians through regular patronage of made in Nigeria goods and services, Ogun State Property and Investment Corporation (OPIC) is now offering prospective buyers of all its housing units spread across the three senatorial districts of the State, an 80% locally input and constructed housing unit.
The move to support the actualization of President Buhari-led campaign centred on the usage of local inputs in the production of goods and services for Nigerians and other residents, according to OPIC Managing Director, is to reduce the cost of living as much as possible while still providing upgraded housing facilities for prospective buyers, and also encourage manufacturers of building materials and create jobs for jobless Nigerians.
Speaking during a working visit to one of its housing estates – “MTR Gardens” at Isheri, Lagos-Ibadan expressway with a team of experts from Nigeria Mortgage Refinance Company (NMRC) on Friday, Jide Odusolu, Managing Director OPIC, declared that the Corporation is working in accordance with Governor Amosun’s mission that is centred on the provision of affordable housing and patronage of local manufacturers of goods and services.
Consequently, Odusolu said, “75 to 80% building materials used for construction of all our housing units are sourced locally. Cables from Coleman Cables based in Ogun; tiles from CPK, woods from the Wood Work Manufacturing, water pipes from PPRI in Ota. I can tell you that almost all the raw materials used in all our housing states are local contents and local organization, and all the materials supplied meet up with International standard.”
Talking on the mortgage agreement with NMRC which involves four other banks, namely, Gateway Mortgage Bank, Trust Bond, The Imperial and Home Based Mortgage Bank, Odusolu added, “We are at MTR Gardens for technical inspection by the partners, partnering to offer mortgages to those that are willing to buy this particular scheme. As you are aware, urban renewal and affordable housing are critical pillars, which is one of the cardinal points of this present administration and this has attracted several awards as a State.
“One of the challenges discovered from a lot of people is affordability, called affordability gap, meaning, I want to buy it, but can I pay over a period of time for it? To pay the cash immediately is a challenge. What we have done is to enter into partnership with NMRC, which basically provides repurchase scheme for Mortgage banks. So, what they need is people that want to buy from this scheme and they would take mortgages from any of the four banks; Gateway Mortgage Bank, Trust Bond, The imperial and Home Based Mortgage Bank.
“You can pay 20% deposit to them and you will start paying on a monthly basis over a six month period. At the end of the six month period, the NMRC will take out a bank and take over that mortgage and give you loan which is minimum of 15 years. This reduces your cost of purchase, it eases your purchase. In order for them to put the project on their platform and begin to get credit approval to pay us.”
Speaking on the mortgage modalities, Dorothy Obata, Head, Business Development, Nigeria Mortgage Refinance Company (NMRC), noted that the long-term mortgage facilities offered was to provide liquidity in the real estate sector of Nigerian economy, saying, “We provide liquidity for mortgage market to enable long term mortgages. You will agree with me that what commercial banks call mortgage which last for only five years tenure, is killing and to take such a mortgage with that huge volume of money for five years, may not be easy.
“So, we have partnership with OPIC not just creating the mortgage, but also helping to sell housing units. We came here to see the development and as well to develop the strategies on how to hit the market, to make sure we are bringing in the member banks to buy the units and then NMRC in return, provides the liquidity to ensure that these people (buyers) have a long term mortgages.”
RAZAQ AYINLA, Abeokuta
