FMBN recovers N3bn housing loan debt in 2018

The Federal Mortgage Bank of Nigeria has said it recovered over N3 billion housing loan debt in 2018.

Group Head, Corporate Communications, Mrs. Zubaida Umar, who confirmed this to Nigerian Tribune in Abuja, quoted the bank’s Managing Director, Ahmed Dangiwa, as saying that the fund would accelerate the effort towards building a robust capital base of about N500 billion.

The recapitalisation of N500 billion is a strategic plan to reform and reposition the institution as an effective provider of safe, decent and affordable housing for Nigerians despite many challenges.

Dangiwa said the recovery was in addition to the N2.4 billion recorded in 2017.

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According to him, after 12 years of failed attempts at institutional restructuring, management’s proactive stakeholder engagement drive led to successful passage of key amendments to the laws establishing the institution and the National Housing Fund (NHF) by both chambers of the National Assembly.

He noted that the amended laws, when assented to by President Muhammadu Buhari, would birth a new, more independent and financially stronger Federal Mortgage Bank of Nigeria (FMBN).

He said the additional liquidity and operational flexibility would greatly enhance FMBN’s capacity to effectively deliver on its mandate to provide access to affordable mortgage finance for home ownership by Nigerian workers.

Dankiwa stated further that as part of the bank’s effort towards sustaining its loan recovery plan, it is working in partnership with the Special Presidential Investigation Panel for the Recovery of Public Property in a move that would likely recoup N43 billion from the bank’s debtors within the next 18 months.

He said the bank was strengthening its collaboration with its key stakeholders, especially the labour unions, whose members constitute the bulk of contributors to the National Housing Fund Scheme.

“Groundbreaking ceremonies have been done and construction work has commenced in earnest in five states, spread across the six geopolitical zones of the country.

“Others are in the pipeline as we intend to cover every state across the country. Part of the central focus is to establish a template for affordable housing delivery in Nigeria.

“Accordingly, the implementation concept is unique with the housing designs and bill of quantities (BoQ) directly commissioned by the bank to ensure the profit motive is greatly minimised.

“This template has given us the leverage to guarantee that the selling prices for the housing units range between N3.1 million and N8.3 million for 1, 2 and 3 bedroom dwellings,” he said.