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: 9 | ARCHIVED on 14-Feb-2018 | ISR31390 | 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 Satisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Risk Rating  High  High 2/14/2018 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 The Nigeria Mortgage Refinance Company (NMRC) came into existence in June 2013, and obtained its full license from the Central Bank of Nigeria in February 2015. It has 22 investors who have committed around US$35 million in share equity to establishing NMRC. Overall private sector shareholders are in the majority with 60% of the equity. NMRC has made significant efforts to develop the housing finance market and developed in particular common underwriting standards. It has identified an initial portfolio of loans for refinance, against which it issued a bond of around US$40 million in July 2015. The bond was very well received by investors which included pension funds, insurance companies and banks. NMRC now has a Medium Term Note Program in place and is able to issue bonds as and when needed. NMRC is currently preparing a second bond issuance which should be completed in early 2018. The CBN selected eight microfinance banks (MFBs) to take part in the housing microfinance pilot, with tailored technical assistance aimed at supporting the MFBs in designing and rolling out formal housing microfinance products. Technical assistance is ongoing and selected MFBs will be able to access a Housing Microfinance Line of Credit administered by the CBN and funded by the Project. The feasibility study for the mortgage guarantee product for low income households should be launched in early 2018. 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  --  Substantial  Substantial 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 3,536.00 50,000.00 2/14/2018 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) Date 31-Dec-2013 31-Dec-2016 31-Dec-2016 31-Dec-2018 Comments The CBN Project Administration Team is working on generating the required information as of Dec. 2017. PHINDPDOTBL  Number of new mortgages below NGN5 million (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,050.00 500.00 500.00 7,500.00 Date 31-Dec-2013 31-Dec-2016 31-Dec-2016 31-Dec-2018 Comments The CBN Project Administration Team is working on generating the required information as of Dec. 2017. PHINDPDOTBL  Proportion of mortgage debt outstanding refinanced by NMRC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.69 4.69 20.00 Date 31-Dec-2013 31-Dec-2016 31-Dec-2016 31-Dec-2018 Comments NMRC issued its first N. 8 billion bond in mid-2015 (and refinanced the same amount of mortgages). NMRC has not yet been able to issue a second bond. NMRC is planning to issue a traditional bond and a sukuk bond (and refinance mortgages by the same amounts) by end February 2018. The CBN Project Administration Team is working on generating the required information as of Dec. 2017 (total outstanding mortgages, in volume, as of Dec. 2017). Overall Comments 2/14/2018 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) Intermediate Results Indicators PHINDIRITBL  Portfolio at risk for housing microfinance (HMF) pilot (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.50 Date 31-Dec-2013 30-Jun-2017 31-Dec-2017 31-Dec-2018 Comments Technical assistance on Housing Microfinance to selected Microfinance Banks (MFB) is ongoing. CBN expects to initiate the disbursement of the Housing Microfinance Line of Credit to selected MFBs by March 2018. PHINDIRITBL  NMRC Efficiency Indicator - Cost to Income Ratio (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 57.00 53.00 42.00 Date 31-Dec-2013 31-Dec-2016 31-Dec-2017 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 8.00 50.00 Date 31-Dec-2013 30-Jun-2017 31-Dec-2017 31-Dec-2018 Comments NMRC issued its first N. 8 billion bond in mid-2015 (and refinanced the same amount of mortgages). NMRC has not yet been able to issue a second bond. NMRC is planning to issue a traditional bond and a sukuk bond (and refinance mortgages by the same amounts) by end February 2018. 2/14/2018 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 30-Jun-2017 31-Dec-2017 31-Dec-2018 Comments The initial consultant selected to undertake the feasibility study for the mortgage guarantee product did not manage to complete the assignment. The CBN decided to hire a firm on a single source basis to undertake the feasibility study. The signature of the contract is pending CBN Senior Management approval. Under these circumstances, it is highly unlikely that the mortgage guarantee product will be formally launched by the closing date of the project (December 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 0.00 5.00 Date 31-Dec-2013 30-Jun-2017 31-Dec-2017 31-Dec-2018 Comments Technical assistance on Housing Microfinance to selected Microfinance Banks (MFB) is ongoing. CBN expects to initiate the disbursement of the Housing Microfinance Line of Credit to selected MFBs by March 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 30-Jun-2017 31-Dec-2017 31-Dec-2018 Comments Technical assistance on Housing Microfinance to selected Microfinance Banks (MFB) is ongoing. CBN expects to initiate the disbursement of the Housing Microfinance Line of Credit to selected MFBs by March 2018. 2/14/2018 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) PHINDIRITBL  Volume (USD) of HFM loans disbursed (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8.00 Date 31-Dec-2013 30-Jun-2017 31-Dec-2017 31-Dec-2018 Comments Technical assistance on Housing Microfinance to selected Microfinance Banks (MFB) is ongoing. CBN expects to initiate the disbursement of the Housing Microfinance Line of Credit to selected MFBs by March 2018. 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 2/14/2018 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 2/14/2018 Page 7 of 7 Public Disclosure Copy