The Central Bank of Nigeria (CBN) has concluded plans to set up a robust financing system and measure that would check the high cost of housing in the country.
With the funding deficit of the sector currently put at N49 trillion and housing deficit of 14 million, the apex bank intends to engage all stakeholders in the sector to drive the needed reforms as well as develop strategies that would expand the availability of affordable housing to the low income group in the country.

The deputy governor, financial system stability of CBN, Dr. Kingsley Moghalu, made this known yesterday in Abuja during a stakeholders’ roundtable on housing/mortgage finance organised by the bank.

Meanwhile, reprieve from the sudden plunge witnessed at the nation’s Stock Exchange came yesterday as bank stocks rose, snapping the longest streak of losses in at least three years on speculation an 18 per cent drop in the period was overdone.

The Bloomberg NSE Banking Index, which tracks the performance of the 10 most capitalised banks, rose 3 per cent to 306.78 by 2:30 p.m. close in Lagos, rebounding from the weakest since January 2009, reached on Wednesday.

The gauge’s 14-day relative strength index, which shows how rapidly prices advanced or dropped during a specified time period, was 26 yesterday.
However, Moghalu stressed that the housing/mortgage sector remained grossly under-developed. He lamented that the situation continues to prevail despite all attempts by all tiers of government to facilitate access to housing finance. He noted that the move by the CBN to address the financing challenges of the sector was in line with the present administration’s transformation agenda.

According to him, “In the face of these challenges and given that housing/mortgage finance is a key component of the financial services industry, it has become imperative for the CBN to champion the reform efforts in the sub-sector”.

He further stated that the proposed reform agenda for the sector would entail strategic re-positioning and strengthening the primary mortgage banks as a vehicle for housing delivery and home-ownership in Nigeria, as well as promoting a robust housing/mortgage finance system through market support initiatives to unlock home equity in both urban and rural areas to finance micro, small and medium enterprises.

The deputy governor however listed the measures to be put in place to include; appropriate legal framework, accelerated development and production of affordable houses, development of institutional framework, and establishment of a mortgage refinance/liquidity company, among others.

Commenting on the activities at the Nigerian Stock Exchange, Lagos-based banking analyst with Renaissance Capital, Adesoji Solanke, said: “The valuations of the banks were getting too attractive to be ignored, and their fundamentals do not justify such a sell-off,” adding, “The sector has been oversold.”
Guaranty Trust Bank Plc , the country’s second-biggest lender by market value, gained for the first time in seven days, adding 5 per cent to 12.22 naira, while Zenith Bank Plc, the largest lender, rose 5 per cent, the most since March 22, to 12.91 naira. First Bank of Nigeria Plc , the third-biggest lender, rallied two per cent to N10.35.

Volume of shares traded closed on a higher note, thus resulting in the appreciation of the twin market indicators by 0.2per cent. The market had been on a downward slide after Friday’s nationalisation of the trio of former Bank PHB, Afribank and Spring Bank.
This caused the equity market to dip by N340 billion. Expert attributed the rise in the market to investors trying to leverage on the low value of stocks to position themselves for higher returns even as the market closed in an upward note, adding N18billion.