The Federal Government has slashed the National Housing Funds (NHF) Individual Housing Construction loan to 7 per cent.
It said the loans are payable over a period of 15 years.
The Managing Director(MD), Federal Mortgage Bank of Nigeria (FMBN), Ahmed Dangiwa, made the disclosure when the Senate Committee on Housing led by its Chairman, Sen Barnabas Gemade, paid an oversight visit to the bank’s headquarters in Abuja.
He said in a bid to tackle the housing affordability challenge for contributors to the NHF, the government also introduced the rent-to-own scheme, where contributors can own a home and pay by monthly or yearly rents over a 30-year period.
ALSO READ: ABC of restructuring
“Another notable one is the reduction of equity contribution requirements for accessing NHF loans from ten to zero percent for sums of up to N5m and twenty, 30 per cent to 10 per cent for loans of up to N15m,” he added.
The MD also stated that efforts were ongoing to fully automate its business operations to improve efficiency and timeliness in the delivery of its services to Nigerian workers.
He explained that a key component of the strategic policy is achieving end-to-end automation of all its operations ranging from NHF collection, loan processing, issuance of statement of accounts, NHF refunds amongst others.
In his remarks, the Senator Gemade commended the landmark strides recorded by management of the (FMBN) in their efforts to reform and reposition the Bank as Nigeria’s leading mortgage institution and provider of affordable social housing.
He also commended ability of the management to create a professional work culture; the sustained push for the N500 Billion recapitalization of the institution, which has led to the passage of the NHF and FMBN amendment bills by the National Assembly; and the development of innovative housing products to cater for the unique needs of the Nigerian worker.
In his words: “In the past two years, we have seen tremendous turnaround in terms of management and organization of this agency. This gives us a sense of comfort that whatever investment government has made, and whatever appropriation the Nigerian people have committed here, either directly or through government, is in safe hands”