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FG increases stake in Shelter Afrique estate financing

The Nigerian government has increased its stake in Shelter Afrique, a pan African housing development financier, with about $7.15 million in additional capital subscription, moving its equity from 13.27 percent to 15.8 percent.

Nigeria is currently faced with a huge housing deficit. According to a 2018 World Bank report in 2018, Nigeria has a deficit of at least 17.0 million and the country requires about 700,000 housing units annually, through a 20-year period to accommodate the rising population.

In September 2020, the Kenya-based firm received $9.4 million from Nigeria. The contribution moved Nigeria to become the second largest shareholder in the organisation with 13.27 per cent of the shareholding, behind Kenya with 17.78 per cent and ahead of the AfDB at 12.83 per cent.

This additional capital subscription still keeps Nigeria (15.8 percent) behind Kenya with one percent (16.85 per cent).

The other top three shareholders of Shelter Afrique whose shareholdings have now changed include AfDB, which now stands at 12.16 per cent, down from 12.71 per cent; Mali at 5.3 per cent, down from 5.54 per cent; and Ghana at 5.05 per cent, down from 5.28 per cent.

The organisation is a partnership of 44 African governments, the African Development Bank (AfDB) and the Africa Reinsurance Corporation (Africa-Re).

In a report on its website, the firm said it also received more capital subscriptions from Swaziland and Burkina Faso.

Lauding the government of Nigeria for its show of confidence in the institution, acting Managing Director and Chief Finance Officer of the organisation, Kingsley Muwowo, said the move now places Nigeria in a good position to become the largest shareholder in Shelter Afrique when the country fully meets its capital commitment.

“We are grateful to the government of Nigeria for their continued support and the importance they have placed on affordable housing.

READ ALSO: Nigeria commits to pay off US$28.7 million capital arrears in Shelter Afrique “We are especially grateful to the Honorable Minister for Works and Housing Babatunde Fashola, Honorable Minister for State, Engineer Abubakar Aliyu, and Honorable Minister for Finance Dr. Zainab Shamsuna Ahmed, for their long-term support and for honoring this significant payment. “Additionally, we appreciate Nigeria’s active shareholder and board participation,” Mr. Muwowo was quoted by The Cable as saying.

He said other countries that have so far ramped up capital subscription in the firm in 2022 are Swaziland and Burkina Faso which paid $317,854.54 and $34,610.00 respectively, for additional stakes.

“So far, we have received $7,504,295.45 in additional capital from member states within the last six months of 2022.

“We are grateful to our shareholders for this much needed capital injection which will go a long way in strengthening the capital structure of the company to support the ongoing fund-raising efforts to raise additional debt capital required to support the project pipeline which now stands at $1 billion across 44 member countries,” he said.

According to the firm’s website, Shelter Afrique is the only pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa