By yushau Shuaib

In a season of politics, anything happens even on the economic front. Recently President Goodluck Ebele Jonathan launched the long-awaited Mortgage Refinance Company which was mooted and proposed by the Central Bank of Nigeria sometimes in 2009.

While there is an existing Federal Mortgage Bank of Nigeria (FMBN) which promotes the growth of viable primary mortgage institutions in Nigeria, the idea behind the Mortgage Refinance Company (MRC) is said to provide the long term liquidity to afford more Nigerians to access funds to pay for their houses.

At the 9th annual retreat for chief executive officers (CEOs) of Primary Mortgage Institutions (PMIs) which was held in Abuja in December 2009, the CBN Governor, Mal. Sanusi Lamido Sanusi, acknowledged that the Mortgage Refinance/Liquidity Company (MRC) had been proposed as part of the reforms of the housing finance sub-sector, as a Special Purpose Vehicle (SPY) to re-vitalize the sub-sector. He told the participants at the Retreat that the dearth of long term deposits coupled with low level of capitalization of the PMIs were key militating factors in the drive to consistently finance long-term loans on a sustainable basis for average Nigerians.

By January 2010 the CBN and operators of PMIs, had commenced work on the modalities for the establishment of the proposed Mortgage Refinance (MRC). Meetings were subsequently held between the CBN and Mortgage Banking Association of Nigeria (MBAN) to discuss modalities for the establishment of the MRC. Between 2011 and 2012 several meetings were held with the modalities towards the establishment of the project.

In February 2013, CBN posted on its website a 38-page document titled: “Regulatory and Supervisory Framework for the Operation of a Mortgage Refinance Company” to unveil a draft framework on the proposed company which was part of efforts to enhance liquidity in the mortgage subsector.

The apex bank therefore prescribed basic regulatory requirements for the MRC’s principal line of business of refinancing credits to borrowers for the security of residential mortgage assets and other qualified collaterals. This writer just wonder what would now differentiate NMRC from FMBN which has over the years been linking the capital market with the housing industry by establishing and operating a viable secondary mortgage market to support the primary mortgage market.

In January 2014 while announcing the establishment of the company, which is now rechristened Nigeria Mortgage Refinance Company (NMRC), President Goodluck Jonathan said the housing sector is an avenue for job creation and economic stability hence his administration’s focus on the sector. He added that the effort of the World Bank through the $300 million loan would be supplemented by those from private investors.

The new company according to its promoters is a public-private partnership which will help to deepen the Nigerian Mortgage Market and make Housing more affordable to low-income earners at low-interest rate. It is being implemented as a component of the Nigeria Housing Finance Programme towards resolving access to affordable housing finance. On the other hand the existing FMBN is mandated by law to service the need of housing delivery in all parts of Nigeria by mobilizing both domestic and offshore funds into the housing sector.

In addition to the pledge of the World Bank to provide the soft International development Association (IDA) loan at a zero interest rate and 40 year tenure to the new NMRC, a large chunk of the pension funds would also be invested in the housing sector.

While one may be concerned about likely duplication of functions between the existing Federal Mortgage Bank of Nigeria (FMBN) and the new Nigeria Mortgage Refinance Company, the government should ensure that it creates an enabling environment for accessibility to legitimate lands, provision of infrastructure and reduction in the cost of housing delivery.

One would have expected that the new mortgage scheme, if necessary should be able to guard against money laundering, especially the unwholesome practices of cash deposits for purchase of houses. It is public knowledge that currently the major beneficiaries of the mortgage financing are the estate developers who milk their customers dry with exorbitant cost of houses. The outrageous prices leave most of the estates unoccupied some for years, especially in highbrow areas of big cities like Abuja, Lagos, Port-Harcourt, Enugu among others. In fact in Abuja 70 percent of exotic houses and mansions in Abuja for instance have not been occupied for years.

The existing mortgage financing only cater for financial institutions and developers who annex available mortgage resources in building homes of speculative value rather than the reality on the ground. Meanwhile patrons of some of the developers and owners of big estates do not secure loans to acquire the properties but pay cash for the acquisition as investment like whose value may appreciate with utilisation. A mortgage finance system that is not accessible to individual and needy borrowers doesn’t worth its existence.

The unfathomable sky rocketing real estate prices in some cities are largely promoted by money launderers who launder slush funds in the property market. It is open secret that fraudsters too no longer hide their loots in banks because of the stringent financial regulations over huge lodgement and transfer of money.

Rather than establishing more companies and agencies to address housing deficit, it may not be out of place if government, in addition, impose and administer property tax on expensive houses that are scattered in big cities and yet unoccupied for too long. Introducing property tax will be in line with global best practices to affect the affluent in the society who deprive ordinary citizens of spaces for decent accommodations.

Any mortgage scheme that could not afford an average Nigerian to have an affordable and decent house within a short period may not be necessary because the rich and politicians know have to have their ways with the so-called mortgage financing in Nigeria.

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What is more alarming is when religious leaders join the bandwagon in fanning the ember of hatred and enmity through provocative pronouncements and combatant posture against programmes and policies that might have good intentions.

The recent brouhaha over the non-interest banking grossly associated and referred to as Islamic banking system is one debate that has created divisions in the polity. Interestingly the Islamic banking principle was mooted long time before the appointment of the current governor of Central Bank of Nigeria (CBN) Mallam Sanusi Lamido Sanusi as attested to by principal insiders in the apex monetary institution. In an interaction in CBN, Pastor Tunde Lemo, the Deputy Governor of Central Bank in charge of Operations disclosed that: “Islamic banking is a programme that started several years before the appointment of the current Governor, Sanusi Lamido Sanusi.” He added that the first application for license was about ten years ago. He went on to mention that more than three years ago he led a team to Malaysia to develop the framework for Non-Interest Banking, part of which, of course is Islamic Banking.

Also at the floor of the National Assembly when he was summoned by federal legislators, the Governor of the Central Bank, Sanusi Lamido Sanusi expressed dismay over the unfortunate tendency of treating every single national matter on ethnic and religious basis. While denying suggestions that the new banking policy has religious motives, he said most of the key decisions preparing Nigeria for an Islamic banking were taken under his predecessor, Professor Charles Soludo who is a staunch catholic and that communications detailing the guidelines for the transactions were signed by deputy governor of the bank, Tunde Lemo, a Christian cleric.

Sanusi also disclosed that Professor Soludo approved Nigeria’s fulltime membership of the International Islamic Banking Council, while the administration of former President Olusegun Obasanjo approved Nigeria’s full membership of the Islamic Development Bank (IDB). Meanwhile many Nigerian banks, including Bank PHB, Intercontinental Bank, and the United Bank of Africa (UBA), have long sought windows to operate Islamic banking in the country. Bank PHB has operated the banking system in minimal measures since 1999, the CBN boss added. In addition, the Securities and Exchange Commission (SEC) and the Nigerian Depositors Insurance Corporation (NDIC) have long issued guidelines for Islamic funds and Islamic insurance respectively.

Before this disclosure, the current President of Christian Association of Nigeria (CAN), a Niger-Deltan, Pastor Ayo Oritsejafor has been the arrowhead of Christian critics against the non-interest banking. He uses harshest words of condemnation over the issue. Meanwhile other respected Christian leaders deliberately refuse to engage in provocative statements but rather take diplomatic steps towards resolving the misconceptions.

There are various ways religious leaders could promote their faiths without resorting to provocative and intimidating statements in an effort to prove there are strong leaders. We have seen how other peace-loving religious leaders provide scholarships, establishing institutions of learning and investing in ventures that could be inspirational for evangelism and at the same time promote religious tolerance and peaceful coexistence among people from diverse backgrounds.

Some Christian leaders like Bishop David Oyedepo, Pastor E.A. Adeboye, and even Prophet T. B. Joshua among others have received endorsement of government to establish Christian universities and broadcast stations that were neither objected to nor criticised by Muslims and their groups. Those institutions established by them are also patronized by non-Christians. Today, for instance, more than eighty percent of faith-based universities in Nigeria are owned by Christians. Since such educational ventures are positive steps towards economic growth, there was never any objection or campaign of calumny from Muslims to associate such ventures as attempt for “Christianisation of Nigeria.”

Unlike his predecessor, Archbishop John Onaiyekan who established and maintained cordial and mutual relationship with Muslims and Islamic groups in Nigeria towards a united and prosperous country based on better understanding, Pastor Oritsejafor is always engaging in political activism and actions that are mostly against anything Islamic and the sections that are presumed as predominantly Muslims. Rather than engaging in unnecessary outbursts, Pastor Ayo Oritsejafor and his co-travellers clamouring against the introduction of Islamic banking should be advised to channel their energies towards ensuring realisation of Christian banking in Nigeria that could be fashioned in line with biblical injunctions.

Though Islamic banking system is globally recognised as financial model for investment alternatives, the prohibition of usury or charging interest on loans as well as investment in prohibited goods and products are not only abhorred in the Quran but also have references from verses in the Bible. Some sections in the bible that prohibits usury for instance in the King James version of Bible include: Exodus 22:25-27, Leviticus 25:36-37, Psalm 15:1-5, Deuteronomy 23:19-20, Jeremiah 15:10 , Ezekiel 18:7-9, 17 and Matthew 25:27 just to mention a few.

Though literatures on Islamic banking and finance are in their thousands, getting similar publications from the Christian perspectives should not be difficult to obtain. In fact the many Christian universities in Nigeria are not established to churn out graduates but to provide scholarly materials in various subjects. Pastor Ayo Oritsejafor should exploit those potentials and also engage scholars and intellectuals to work out the frameworks for Christian Banking in Nigeria.  The Nigerian Muslim will surely not object or condemn the initiative just like similar programmes and policies initiated and formulated by Christians.

Since Christian professionals in the financial worlds including our Dr Ngozi Okonjo-Iweala and Segun Aganga among others have spoken to express supports for the Islamic banking, including the recent endorsement by the National Assembly, agitators against the system should either give peace a chance by the development or go to the Court, the last resort.

It is dangerous to use religion for selfish political power and economic gains when it should be the weapon to uplift our spirituality and enhance moral standards in whatever we do.  No one should be against Christian banking in Nigeria even if operated side by side with Islamic banking.

This article by Yushau A. Shuaib has appeared is some online media as well as national newspapers including People’s Daily July 25, New Nigerian July 25, Daily Independent July 28, Leadership July 28, Vanguard July 29, Thisday July 31,  and Economic Confidential August 1, 2011

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