Public Disclosure Copy The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) Housing Finance Development Program (P131973) AFRICA | Nigeria | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 10 | ARCHIVED on 27-Jun-2018 | ISR33368 | Implementing Agencies: Central Bank of Nigeria, Federal Ministry of Finance of Nigeria, Nigeria Mortgage Refinance Company Key Dates Key Project Dates Bank Approval Date:26-Sep-2013 Effectiveness Date:05-Mar-2014 Planned Mid Term Review Date:21-Sep-2016 Actual Mid-Term Review Date:21-Sep-2016 Original Closing Date:31-Dec-2018 Revised Closing Date:31-Dec-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to increase access to housing finance by deepening primary and secondary mortgage markets in the Federal Republic of Nigeria. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name 1. Mortgage Refinance Company:(Cost $250.00 M) 2. Mortgage Guarantee:(Cost $25.00 M) 3. Housing Microfinance:(Cost $15.00 M) 4. Technical Assistance and Capacity Building:(Cost $10.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Risk Rating  High  High 6/27/2018 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) Implementation Status and Key Decisions • While overall implementation progress towards achieving the PDO has been slow and substantial turnaround in terms of outcomes remains uncertain before the project closure in December 2018, there has been an effort towards revival of some key activities that can reinforce further development of the housing finance market. • Most notably, this includes NMRC’s renewed access to capital markets and refinancing operations after approximately two years of dormancy due to unfavorable market conditions, commencement of the feasibility assessment and business plan development for the design of the mortgage insurance product, and a small-scale piloting of Housing Microfinance (HMF). In this regard, the recommended focus in the next 6 months would be to prioritize the completion of these activities. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  High  High Macroeconomic  --  High  High Sector Strategies and Policies  --  Substantial  Substantial Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  High  High Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  High  High Other  --  --  -- Overall  --  High  High Results Project Development Objective Indicators PHINDPDOTBL  Number of new mortgage loans provided (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4,200.00 3,536.00 4,102.00 50,000.00 Date 31-Dec-2013 31-Dec-2016 31-Dec-2017 31-Dec-2018 Comments The reported number of new mortgages refers to the period January 1 - December 31, 2017. 6/27/2018 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) PHINDPDOTBL  Number of new mortgages below NGN5 million (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,050.00 500.00 2,948.00 7,500.00 Date 31-Dec-2013 31-Dec-2016 31-Dec-2017 31-Dec-2018 Comments The reported number of new mortgages below NGN5mn refers to the period January 1 - December 31, 2017. PHINDPDOTBL  Proportion of mortgage debt outstanding refinanced by NMRC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.69 1.97 20.00 Date 31-Dec-2013 31-Dec-2016 31-Dec-2017 31-Dec-2018 Comments The proportion of mortgage debt outstanding refinanced by NMRC is based on the volume of past refinancing from 2015. Overall Comments Intermediate Results Indicators 6/27/2018 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) PHINDIRITBL  Portfolio at risk for housing microfinance (HMF) pilot (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 -- 2.50 Date 31-Dec-2013 31-Dec-2017 26-Jun-2018 31-Dec-2018 Comments The Project Administration Team has not provided an update on this indicator. PHINDIRITBL  NMRC Efficiency Indicator - Cost to Income Ratio (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 53.00 57.76 42.00 Date 31-Dec-2013 31-Dec-2017 31-May-2018 31-Dec-2018 PHINDIRITBL  NMRC New Bond issuance volume (years 3 - 5 are without sovereign guarantee) Billion Nigerian Naira (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 11.00 50.00 Date 31-Dec-2013 31-Dec-2017 26-Dec-2017 31-Dec-2018 Comments NMRC issued N11bn with sovereign guarantee. 6/27/2018 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) PHINDIRITBL  Number of Guarantees (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 900.00 Date 31-Dec-2013 31-Dec-2017 26-Jun-2018 31-Dec-2018 PHINDIRITBL 3 - 5 pilot MFBs develop/adapt/adopt housing Microfinance loan products, access project credit line and establish first cycle of micro financing lending programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 7.00 5.00 Date 31-Dec-2013 31-Dec-2017 26-Jun-2018 31-Dec-2018 PHINDIRITBL  Number of HMF loans disbursed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,860.00 Date 31-Dec-2013 31-Dec-2017 26-Jun-2018 31-Dec-2018 Comments The Project Administration Team has not provided an update on this indicator. PHINDIRITBL  Volume (USD) of HFM loans disbursed (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 -- 8.00 Date 31-Dec-2013 31-Dec-2017 26-Jun-2018 31-Dec-2018 Comments The Project Administration Team has not provided an update on this indicator. What has been reported was total disbursement to MFBs of $1.82 million Naira equivalent. However, given that MFBs have one month to disburse to final borrowers, it is unclear if the entire amount had been on-lent. 6/27/2018 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P131973 IDA-52920 Effective USD 300.00 300.00 0.00 130.13 152.23 46% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P131973 IDA-52920 Effective 26-Sep-2013 18-Dec-2013 05-Mar-2014 31-Dec-2018 31-Dec-2018 Cumulative Disbursements 6/27/2018 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) Restructuring History Level 2 Approved on 25-Apr-2018 Related Project(s) There are no related projects. 6/27/2018 Page 7 of 7 Public Disclosure Copy