Following the recent novel initiatives and review of policies including the new zero equity contribution on NHF loans for Nigerian workers, the Federal Mortgage Bank of Nigeria (FMBN) under the leadership of Arc. Ahmed Musa Dangiwa is raising the hope of Nigerians desiring to own houses of their own.
The Coalition of Civil Societies and Media Executives for Good Governance in Nigeria (COCMEGG), is compelled to issue the following statement in recognition of the transformational development and giant strides of the Federal Mortgage Bank of Nigeria,
in its appraisal of the bank’s efforts in carrying out its regulatory roles and functions as enshrined in the Act establishing the bank and in making home-ownership affordable, available and less cumbersome to Nigerians workers thereby driving the growth of the economy and its allied sectors.
The World Bank estimated that Nigeria has a housing deficit of about 17 million units and the FMBN has designed the NHF to mobilize funds to provide the citizens with affordable residential houses through accredited PMBs with the lowest rate possible.
The introduction of the zero equity on loans to Nigerian workers is a novel initiative commenced by the bank for the implementation of a new approved condition for accessing loans from the National Housing Fund (NHF).
The FMBN provides mortgage loans from the pool of funds available to the NHF at four percent interest to accredited primary mortgage banks for on-lending at six percent to NHF contributors over a maximum tenure of 30 years, which is secured by the mortgage properties.
This initiative will lead to the reduction of hardship presently experienced by Nigerians in having access to building and owning their own houses.
It is indeed a strategic initiative that will not only drive the mortgage industry but the economy as a whole as it will also boost and encourage people at the grassroots by enriching their wellbeing and making life easy for Nigerians by engaging more people in the construction sector.
Since the present leadership took over the helms of affairs, it has been plethora of initiatives, as the apex mortgage body has experienced a lot of milestones ranging from good governance practice, accountability and transparency in its core operations including institutional capacity building and infrastructure development of the bank.
It is on record, that Nigerians have never been so sensitized in the last three decades, unlike what we are seeing today towards homeownership. As the management strategic awareness, enlightenment and sensitization campaign have created the needed impetus for the boost of the industry as witnessed by all today.
We commend the paradigm shift from the old to the new and applaud the gigantic development strides in the welfare of staff, development of critical infrastructure as well as maintenance culture of infrastructure adopted by the Dangiwa led management in keeping abreast of the mortgage industry globally.
The various partnership and collaborations with the Federal Inland Revenue Service (FIRS), Mortgage Banking Association of Nigeria (MBAN), Nigeria Mortgage Refinancing Company (NMRC), Central Bank of Nigeria(CBN)
and several others by the Federal Mortgage Bank of Nigeria(FMBN) had paid off as Nigerians can now access these instruments effortlessly unlike before when people did not believe in the mortgage industry and are not keen to invest in the industry. It is now a huge win for the Nigerian workers like never before.
Due to the corporate culture of accountability and good governance regime entrenched in the Federal Mortgage Bank of Nigeria, critical mass infrastructure have been overhauled to allow for new up to date applications in terms of computerization of its operations, banking reforms and the application of various financial instruments in the industry to ease the operations of the apex mortgage body.
The dynamism of the leadership and sound management practice is leading to the enactment of a new bill that seeks the establishment of the Institute of Mortgage Brokers and Lenders of Nigeria (IMBLN) for better regulation of the industry to promote sustainable policy framework and eliminate fraudsters and quacks, therefore breeding professionalism in all ramifications.
As a veritable institution to safeguard and regulate the mortgage industry in the country and lay a solid foundation for the prosperity and wellbeing of Nigerian workers, it has campaigned and canvassed for the strengthening of the Primary Mortgage Banks (PMBs) to increase its capital base so as to empower and assist in building the industry by raising its capital lending to subscribers.
Only well-funded PMBs that can guarantee homeownership for a good number of people, which is the main goal of FMBN to advance homeownerships to Nigerian workers by creating mortgage markets with a sustainable financing systems.
The FMBN is also on the verge of receiving the much talked about 500 billion naira recapitalization from the federal government so as to shore-up the industry for growth and development and be able to carter for the housing needs of millions of Nigerians which is in tandem with the electoral mandate of the present administration and best global practices.
As part of the new social housing program that is part of the Economic Recovery and Growth Plan (ERGP) and the present administration vision for “Housing for all” the FMBN is committed in the realization of this lofty ideals and vision
and as such building synergies with private sectors to expand the critical mass infrastructure of developing housing schemes across the country at affordable rates as Nigeria presently enjoys the lowest rate in terms of homeownership in Sub-Sahara Africa.
COCMEGG passes a vote of confidence on the hierarchy of the Federal Mortgage Bank of Nigeria (FMBN), under Arc. Ahmed Musa Dangiwa, for its forthrightness, vision and strategies in seeing to it that the average workers, middle income earners and the common man on the streets have a home to lay their heads
and therefore, called on all relevant stakeholders in the industry to support and partner with the institutional development, transformational philosophy and revolution presently taking place at the FMBN and key in for the overall prosperity of the Nigerian workers.
Omoba Kenneth Aigbegbele Com. InuwaSule
President. Publicity Secretary