The Federal Mortgage Bank of Nigeria (FMBN) says it increased the National Housing Funds disbursements by N112billion in three years.
It said this represented a 74 per cent increase in addition to the N152.5bn recorded in 2017, making a cumulative sum of N265bn.
The Managing Director/Chief Executive, FMBN, Ahmed Dangiwa made the disclosure at the 2020 Housing Summit held in Abuja.
According to him, about 8,700 new homes were built within the last three years making a total of 29,133 funded housing units.
Similarly, Dangiwa noted that within the last three years, NHF collections grew by N186bn representing 80 per cent to reach a cumulative amount of N418bn as of September 2020.
He further said about 570,000 contributors have been added to attain a contributor base of over 5.1 million NHF subscribers.
The MD added that of the 36 States of the Federation are compliant regarding workers’ contributions with five States resuming contributions within the past three years.
In another development, Dangiwa disclosed plans to seek review of the NHF Act to ensure mandatory investments by banks and insurance companies.
He said this became imperative as banks and insurance companies were yet to comply with the investment mandate stipulated by law, since the enactment of the NHF Act 28 years ago.
He noted that their non-compliance has denied the housing finance sector significant investments that could have added value to housing delivery, job creation and economic growth.
“While neither ignorance nor excuses are acceptable for flouting the law, reasons given for non-compliance include the loss of business opportunities of investing in the NHF as opposed to other more lucrative use of resources, the risk of loss of funds due to business risks and uncertainties associated with real estate investments, uncertainty on the duration of such investments, and the prescribed rates of return not being economical or profitable, among others,” he said.
In recognition of the obstacles identified by banks and insurance companies, he said the bank would advocate a new NHF investment framework that addresses the concerns of these mandatory investors.
He added, “In summary, the framework proposes that banks and insurance companies contribute five per cent of their Profit-After-Tax as mandatory investments into the National Housing Fund as opposed to portions of their loan portfolios of life/non-life funds.”
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