The Securities and Exchange Commission and the Federal Mortgage Bank of Nigeria have announced a strategic collaboration to develop a robust non-interest mortgage ecosystem.
This was disclosed in a statement from the SEC on Friday, indicating that the partnership is aimed at tackling the nation’s massive housing deficit and deepening financial inclusion.
The partnership, unveiled at a high-level meeting in Abuja, seeks to create and regulate viable Sharia-compliant financing structures that will enable millions of Nigerians, particularly those excluded from conventional interest-based loans, to access affordable homeownership.
Director-General of the SEC, Emomotimi Agama, while emphasising the commission’s role in ensuring the integrity and stability of the proposed financial instruments, stated that the SEC would provide the necessary regulatory guidance and framework to facilitate the issuance of Sukuk and other non-interest capital market products to fund these mortgages.
“Our collaboration with FMBN is pivotal to unlocking long-term financing for the housing sector,” Agama said.
“By creating a clear regulatory pathway for non-interest mortgage-backed securities, we can attract ethical investors, both domestic and international, to channel funds into this critical area. This will create a virtuous cycle of funding, construction, and ownership.”
