..NIGERIA – InfraCredit, a specialized infrastructure credit guarantee institution, and Shelter Afrique Development Bank (ShafDB), a pan-African housing financing institution, are set to promote affordable housing in Nigeria with a N200 billion (US$219.505m) facility.
According to ShafDB, this innovative affordable housing credit guarantee programme is geared towards financing and advancing housing, urban, and related infrastructure development.
The financing guarantee structure between Shelter Afrique and InfraCredit marks a significant stride in addressing Nigeria’s housing deficit, with the overall project targeting the development of up to 1,200 EDGE-certified housing units in Nasarawa State.
Thierno-HabibHann, managing director of Shelter Afrique, disclosed that the credit guarantee programme, which is to be facilitated by InfraCredit, was aimed at developing 370 affordable housing units in Nasarawa Technology Village.
“The innovative financing structure has begun with the first pilot transaction of N3 billion (US$3.292m) debt financing guarantee for Modern Shelter Systems and Services Limited, under a comprehensive affordable housing programme,” he said.
According to him, the N3 billion (US$3.292m) debt financing guarantee is part of ShafDB’s N200 billion (US$219.505m) affordable housing credit programme in Nigeria, recalling that, early last year, the housing financing institution visited Nigeria’s capital market with N46 billion (US$50.486m) bond issuance.
The bond issue was oversubscribed by 60.7 percent which was a reflection of the strong investor appetite in the country. The issue was also a starting point for the institution’s local currency funding to mitigate foreign currency risk.
Thierno-HabibHann explained, “This initiative is a testament to ShafDB’s unwavering commitment to nurturing sustainable and resilient housing solutions, propelling positive transformation across the African continent.”
He said that the institution’s commitment to “scaling up interventions in Nigeria in an integrated model, mitigating off-take risks, and providing beneficiaries with more accessible, affordable, and longer-tenured financing options, ultimately fostering sustainable development and prosperity.”
Chinua Azubike, InfraCredit’s CEO, said he was excited by the successful closing of this transaction and the significance of the project in the housing sector because of their ability to replicate and scale its impact.
He noted that the Nasarawa Technology Village project underscored a successful example of public–private partnerships as a mechanism for unlocking climate financing for sustainable development.
InfraCredit partners LFZC on Sea Turtle Conservation Project
Meanwhile, InfraCredit has partnered with the Lagos Free Zone (Tolaram) Company (LFZC) on the Sea Turtle Conservation Project (TCP) to actively participate in the monitoring and evaluation of project outcomes and provide financial support.
The TCP, supported by the KfW Development Bank, is a unique project aimed at adopting a community-based and participatory approach to address ecological concerns related to turtle habitat degradation, harvesting, and illicit trade, covering the coastal beaches adjacent to the Lekki Deep Seaport and host communities around the Lagos Free Zone.
The project is designed to mitigate the risks associated with anthropogenic disturbances of turtle nesting sites.
Since 2021, InfraCredit has supported the Lagos Free Zone (Tolaram) Company’s (LFZC) three bond issuances totalling NGN53.0 billion (US$65.5 million) to aid the development of the Industrial and Logistics Zone, Real Estate clusters, Dry Bulk Terminal and other supplementary infrastructure within the zone.
The Lagos Free Zone (LFZ) hosts the Lekki Deep Seaport which began commercial operations in April 2023.
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