The World Bank
   Housing Finance Development Program (P131973)




                                                                             REPORT NO.: RES35190

                                   DOCUMENT OF THE WORLD BANK




                                        RESTRUCTURING PAPER
                                                 ON A
                                 PROPOSED PROJECT RESTRUCTURING

                                                     OF

                            HOUSING FINANCE DEVELOPMENT PROGRAM
                                 APPROVED ON SEPTEMBER 26, 2013
                                                     TO

         FEDERAL MINISTRY OF FINANCE OF NIGERIA,NIGERIA MORTGAGE REFINANCE COMPANY


FINANCE, COMPETITIVENESS AND INNOVATION

AFRICA




                         Regional Vice President:     Hafez M. H. Ghanem
                                Country Director:     Rachid Benmessaoud
                  Senior Global Practice Director:    Sebastian-A Molineus
                     Practice Manager/Manager:        Rashmi Shankar
                              Task Team Leader:       Andrej Popovic
           The World Bank
           Housing Finance Development Program (P131973)



I. BASIC DATA

Product Information

Project ID                                                     Financing Instrument
P131973                                                        Investment Project Financing

Original EA Category                                           Current EA Category
Partial Assessment (B)                                         Partial Assessment (B)

Approval Date                                                  Current Closing Date
26-Sep-2013                                                    31-Dec-2018




Organizations

Borrower                                                       Responsible Agency
Federal Ministry of Finance of Nigeria,Nigeria Mortgage
                                                               Central Bank of Nigeria
Refinance Company



Project Development Objective (PDO)
Original PDO
The project development objective is to increase access to housing finance by deepening primary and secondary
mortgage markets in the Federal Republic of Nigeria.
Summary Status of Financing


                                                                                       Net
Ln/Cr/Tf                 Approval         Signing Effectiveness         Closing Commitment Disbursed Undisbursed

IDA-52920              26-Sep-2013 18-Dec-2013 05-Mar-2014 31-Dec-2018                   300.00   179.20        101.71


Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?
No


II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
       The World Bank
       Housing Finance Development Program (P131973)



The project is closing on December 31, 2018. The sole purpose of restructuring is to cancel the undisbursed project
balance at the request of the Government.

Project Status:

The Project Development Objective (PDO) is to increase access to housing finance by deepening primary and
secondary mortgage markets in the Federal Republic of Nigeria. The project has four components: (i) Establishment of
the Mortgage Refinance Company (SDR 166.3 million or originally estimated US$250 million); (ii) Establishment of a
Mortgage Guarantee Product Targeted at Lower Income Borrowers (SDR16.6 million or originally estimated US$25
million); (iii) Housing Microfinance (SDR10 million or originally estimated US$15 million) and (iv) Technical Assistance
and Capacity Building (SDR6.6 million or originally estimated US$10 million). The Project was approved in September
2013 and it became effective in March 2014. The closing date of the project is December 2018. The project
disbursement rate is at around 60 percent.

While strong efforts were made to further advance project implementation in the last several months, substantial
turnaround in terms of additional disbursement and outcomes in support of the project development objective could
not be achieved before the project closure on December 31, 2018 resulting in total undisbursed balance of
SDR73,202,607. At the same time, it is important to acknowledge progress with the revival of some key activities that
can reinforce further development of the housing finance market. Most notably, this included NMRC’s renewed access
to capital markets and refinancing operations after approximately two years of dormancy due to unfavorable market
conditions, progress with the design of the mortgage insurance product, including development of the regulatory and
supervisory framework, and progress towards small-scale piloting of Housing Microfinance (HMF). However, these
activities were not sufficient to facilitate additional disbursement.

Rationale for Restructuring

In light of the project closure on December 31, 2018, the Government of Nigeria requested cancellation of
undisbursed balance of SDR73,202,610.03 (as per information from Client Connection at the time of the request) so
that these IDA resources can be reallocated to other development priorities in Nigeria. The request has been
communicated in a letter from the Federal Ministry of Finance. Following the review of accounts the Loan Department
determined that the exact balance available for cancellation was SDR73,202,607.


III. DETAILED CHANGES