Gabriel Enenche —
The Nigerian government has increased its stake with Shelter Afrique, pan-African housing development institute, with about $3.003 billion or $7.15 million in additional capital subscription and at a conservative official dollar/naira $1 to N420 rate.
It takes Nigeria’s shareholding to 15.8 per cent, one-percent behind top shareholder Kenya, which currently stands at 16.85 per cent, as revealed yesterday by Busiweek, a news medium based in the East African country.
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Shelter Afrique, headquartered in Kenya, says it’s the only pan-African finance institution that exclusively supports the development of housing and urban development in Africa.
The organisation is a partnership of 44 African governments, the African Development Bank (AfDB) and the Africa Reinsurance Corporation (Africa-Re).
Added to Nigeria’s new payment, the company also received more capital subscriptions from Swaziland and Burkina Faso.
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.
According to the acting Managing Director Shelter Afrique, Kingsley Muwowo appreciated the Nigerian government for its show of confidence in the institution.
“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, he said.
“We are grateful to the government of Nigerian for their continued support and the importance they have placed on affordable housing.
“We are especially grateful to the Honourable 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 honouring this significant payment.
“Additionally, we appreciate Nigeria’s active shareholder and board participation,” Mr. Muwowo was quoted to have said.
The relationship between Nigeria and Shelter Afrique has grown recently. In September 2020, the institution received $9.4 million additional capital subscription from Nigeria.