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: 11 | ARCHIVED on 19-Dec-2018 | ISR35230 | 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 pdoTable 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 Components Table 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 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, completion of the feasibility assessment and business plan development for the design of the mortgage insurance product, and activities related to small-scale piloting of Housing Microfinance (HMF). 12/19/2018 Page 1 of 6 The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) 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 Substantial Environment and Social -- Moderate Moderate Stakeholders -- High High Other -- -- -- Overall -- High High Results PDO Indicators by Objectives / Outcomes Increase access to housing finance by deepening primary and secondary mortgage markets IN00618906 ►Number of new mortgages below NGN5 million (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,050.00 2,948.00 2,948.00 7,500.00 Date 31-Dec-2013 31-Dec-2017 31-Dec-2017 31-Dec-2018 The reported number of new mortgages below NGN5mn refers to the period January 1 - December 31, Comments: 2017. The PAT has not provided updated indicators. IN00618908 ►Proportion of mortgage debt outstanding refinanced by NMRC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.97 1.97 20.00 Date 31-Dec-2013 31-Dec-2017 31-Dec-2017 31-Dec-2018 12/19/2018 Page 2 of 6 The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) The proportion of mortgage debt outstanding refinanced by NMRC is based on the volume of past refinancing from 2015. The PAT has not provided an updated following additional volume of refinancing Comments: from July 2018. IN00618869 ►Number of new mortgage loans provided (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4,200.00 4,102.00 4,102.00 50,000.00 Date 31-Dec-2013 31-Dec-2017 31-Dec-2017 31-Dec-2018 The reported number of new mortgages refers to the period January 1 - December 31, 2017. The PAT Comments: has not provided updated indictors. Overall Comments PDO The project has not provided updated PDO indicators for the results framework as of the date of preparation of this ISR. The most recent reports are as of December 31, 2017. Intermediate Results Indicators by Components 1. Mortgage Refinance Company IN00618909 ►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 11.00 19.00 50.00 Date 31-Dec-2013 26-Dec-2017 12-Jul-2018 31-Dec-2018 NMRC issued a total of N19bn with sovereign guarantee as at June 2018. Comments: IN00618907 ►NMRC Efficiency Indicator - Cost to Income Ratio (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 57.76 54.00 42.00 Date 31-Dec-2013 31-May-2018 31-Oct-2018 31-Dec-2018 NMRC reported cost to income ration of 54 percent during the mission. Comments: 2. Mortgage Guarantee IN00618910 ►Number of Guarantees (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/19/2018 Page 3 of 6 The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) Value 0.00 0.00 0.00 900.00 Date 31-Dec-2013 26-Jun-2018 03-Dec-2018 31-Dec-2018 The guarantee company has not been established and no guarantees were issued under the project. Comments: 3. Housing Microfinance IN00618911 ►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 7.00 7.00 5.00 Date 31-Dec-2013 26-Jun-2018 03-Dec-2018 31-Dec-2018 IN00618913 ►Volume (USD millions) of HFM loans disbursed (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 1.55 8.00 Date 31-Dec-2013 26-Jun-2018 31-Oct-2018 31-Dec-2018 On the basis of reports provided by the PAT out of the total volume of $1.82 million Naira Comments: equivalent disbursed to 7 MFB, around $1.55 million was disbursed to final borrowers. IN00618912 ►Number of HMF loans disbursed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 664.00 2,860.00 Date 31-Dec-2013 26-Jun-2018 31-Oct-2018 31-Dec-2018 According to a report submitted by PAT there were 664 sub-borrowers/clients who received HMF loans. Comments: IN00618870 ►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 26-Jun-2018 31-Oct-2018 31-Dec-2018 The Project Administration Team has not provided a clear update on this indicator applicable to all MFBs. The reported actual value below (zero) is entered as the system requires actual value to be entered, though in practice portfolio at risk has not been reported and actual value is not clear. Also, "zero" value Comments: for portfolio at risk would be the best outcome which cannot be confirmed in absence of data. Therefore, the value entered should be interpreted as absence of data on this indicator, as opposed to "zero" value. Overall Comments IR 12/19/2018 Page 4 of 6 The World Bank Implementation Status & Results Report Housing Finance Development Program (P131973) The project has not provided updated complete aggregate results as of the time of preparation of this ISR. The available updates are based on documents submitted by PAT or reported by the Nigeria Mortgage Refinance Company. 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 0.00 179.20 101.71 64% 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 12/19/2018 Page 5 of 6 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. 12/19/2018 Page 6 of 6