Lagos – FMDQ OTC Securities Exchange has signed a Memorandum of Understanding (MoU) with the Nigeria Mortgage Refinance Company Plc (NMRC) to intermediate long-term funds from the capital market.
FMDQ in a statement on Wednesday in Lagos said that the MoU was to address the nation’s housing deficit.
It said that the partnership would intermediate long-term funds from the capital market toward the development of the mortgage industry.
The statement explained that the MoU would enable both organisations to bridge the nation’s housing deficit through the provision of affordable housing finance.
It quoted Prof. Charles Inyangete, NMRC Managing Director as saying “FMDQ had contributed immensely to the development of the Nigerian debt capital market (DCM)’’.
Inyangete noted that the MoU executed with the Exchange demonstrated NMRC’s commitment to deepening of the DCM.
The statement also quoted Mr Bola Onadela, FMDQ Managing Director as saying “the partnership would enhance the development of the country’s housing sector’’.
“The need for effective cooperation and collaboration between FMDQ and NMRC cannot be overemphasised, as this partnership will mark an essential step towards the development of the Nigerian housing sector.’’
Onadele said that the partnership would aid the introduction and deployment of initiatives aimed at launching a range of mortgage products and the articulation of strategies.
He explained that this was aimed at developing the Nigerian mortgage industry through non-interest finance.
“Both organisations will partner on awareness programmes, investor/market education and capacity building in Nigeria; and the expansion of listing opportunities for NMRC debt securities.
“These initiatives were geared towards engendering market confidence and allowing NMRC to effectively connect the Nigerian mortgage industry to the DCM.
“And collaborate on pricing methodology, valuation framework and index development for mortgage bonds,’’ Onadele said.
According to Onadele, FMDQ, NMRC and other key stakeholders will engage in relevant initiatives and campaigns to educate the market on mortgage-related debt instruments.
The statement listed the debt instruments to include Mortgage-Backed Securities and Real Estate Investment Trusts, among others.
The News Agency of Nigeria (NAN) reports that FMDQ, a securities exchange and self-regulatory organisation registered by the Securities and Exchange Commission (SEC) is positioned to lead innovation and development in the Nigerian Debt Capital Market space.
It provides a platform for listing, quoting and trading of fixed income and currency products. (NAN)