Stories By Dayo Ayeyemi, Lagos
The Federal Government has been urged to assist the Federal Mortgage Bank of Nigeria (FMBN) with $25 billion sovereign guarantee for 25 years for on-lending to real estate developers at single digit not more than two per cent per annum.
This initiative, Chairman/Chief Executive Officer, HOB Estates Limited, Chief Olusegun Bamgbade, said would help to ease the problems of illiquidity and high cost money inhibiting affordable housing production and home ownership among Nigerians,
Speaking exclusively with Nigerian Tribune in an interview on the urgent role that government needs to play to reduce the nation’s 17 million housing deficit to the barest minimum, Bamgbade said “Government should give a sovereign guarantee to the international financial institutions for 25 years for a $25 billion loan at one per cent per annum on behalf of Federal Mortgage Bank of Nigeria (FMBN) for onward lending to real estate developers at two per cent per annum.”
He pointed out to government that loans on housing were secured, adding that the houses would surely pay back without stress.
For effective administration of the loans, the CEO of HOB Estates called on the Federal Government to restructure the management of FMBN
“Government should restructure the management of FMBN to remove nepotism and partisanship, to enable judicious application of funds for housing developments nationwide,” Bamgbade said.
According to him, dearth of affordable funds was the limiting factor preventing private real estate developers from filling the gap of providing houses for the low income earners in the country.
He, however, blamed financial institutions responsible for the provision of funds to private real estate developers for the situation, noting that these institutions were lagging behind in the discharge of their statutory duties, especially in the area of low-income housing delivery.
On building materials’ prices, he said the cost would continue to rise as long as Naira depreciates against the dollar.
He said “That’s why I have been vociferous in my quest to have a stable naira. Hopefully, Dangote Refinery and other modular refineries will help in stabilising the naira and even assist in Naira appreciation.
“Once we stopped paying dollars to import petroleum products into the country, the pressure on Naira will reduce or disappear. Naira will soon begin to appreciate if we all support Dangote Refinery and other modular refineries to function optimally.”
When naira appreciates, Bamgbade is of the opinion that the cost of building materials, in turn, will nosedive.
He urged government at all levels not to politicise the issue of housing for low income Nigerians.
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