(Ecofin Agency) - Nigeria Secures Financial Support from U.S. Chamber of Commerce, Boosting Struggling Sectors. The aim is to improve mortgage access, bolster SMEs, and enhance local cashew processing.

Nigeria has secured $320 million in financial support from the U.S. Chamber of Commerce, Vice President Kashim Shettima announced yesterday during the 79th United Nations General Assembly in New York. The funding aims to strengthen Nigeria's mortgage sector, support small and medium-sized enterprises (SMEs), and promote cashew processing.

According to Shettima, part of the funds ($200 million) will be directed toward mortgage financing and refinancing to help Nigerians access homeownership and improve lending conditions. Nigeria faces a huge gap in housing finance, with an estimated need of CFA15-20 trillion (about $40-53 billion) to address the housing shortage. In 2023, the country’s housing deficit is estimated at 28 million units, up significantly from 7 million in 1991 a 300% increase over three decades.

The mortgage system in the country is especially challenging, with high interest rates, often close to 25%, discouraging many from using this type of financing. Currently, fewer than 10% of homes are purchased through mortgages.

In addition, $100 million of the U.S. funding will go to SMEs, with a focus on empowering women entrepreneurs, who lead 40% of these businesses in Nigeria. The goal is to revitalize SMEs, which make up 90% of the country’s businesses, contribute nearly 50% of the GDP, and account for over 80% of formal jobs, according to data from the National Bureau of Statistics (NBS) and PwC. The World Bank estimates Nigeria's SME funding gap at $158.1 billion, the second largest in the world after Brazil.

The remaining funds will be invested in cashew processing through Singapore’s Robust International. The initiative aims to enhance the agricultural value chain, as less than 10% of Nigeria’s cashews are currently processed locally.