SHELTER Afrique Development Bank (ShafDB) has unveiled an innovative Affordable Housing Credit Guarantee Programme in Nigeria, securing approval from its Board of Directors. The programme’s inaugural phase involves a 3 billion Naira (about $3.7 million) debt financing guarantee for Modern Shelter Systems and Services Limited as part of a comprehensive affordable housing initiative.
The groundbreaking programme, facilitated in partnership with InfraCredit, a triple A (AAA)-rated specialised infrastructure credit guarantee institution, is geared toward constructing 370 affordable housing units in Nasarawa Technology Village. This initiative aligns with International Finance Corporation’s (IFC) green building standards, EDGE, ensuring sustainable development practices.
ShafDB’s Affordable Housing Credit Programme, totalling 200 billion Naira in Nigeria, aims to address the country’s staggering housing deficit, estimated at 28 million units. The bank’s prior 46 billion Naira bond issuance in the local market, oversubscribed by 60.7 percent, showcases robust investor interest and lays the groundwork for local currency funding, mitigating foreign currency risks.
Additionally, ShafDB’s investment in the Housing Solution Fund (HSF) aims to cater to the demand side of housing, further bolstering the housing ecosystem and value chain.
The collaboration between Shelter Afrique and InfraCredit is expected to significantly contribute to Nigeria’s housing deficit, with a broader project scope targeting the development of up to 1,200 EDGE-certified housing units in Nasarawa State.
Managing Director of Shelter Afrique Development Bank, Thierno-Habib Hann, emphasised the institution’s dedication to scaling up interventions in Nigeria. He highlighted the integrated model aimed at ‘mitigating off-take risks and offering accessible, affordable, and longer-tenured financing options, fostering sustainable development and prosperity.’
Chinua Azubike, Chief Executive Officer of InfraCredit said ‘We are excited with the successful closing of this transaction and the significance of the project in the housing sector, because of our ability to replicate and scale its impact. The Nasarawa Technology Village project underscores a successful example of public–private partnerships as a mechanism of unlocking climate financing for sustainable development.’
This innovative programme signifies ShafDB’s unwavering commitment to nurturing sustainable and resilient housing solutions, positively impacting Africa’s housing landscape.