Reps call for overhaul of Federal Mortgage Bank, query utilisation of N360bn public fund

The House of Representatives on Thursday urged President Muhammadu Buhari to take urgent steps to overhaul Federal Mortgage Bank of Nigeria (FMBN) in order to address the housing malaise in Nigeria.

The resolution was sequel to the adoption of a motion sponsored by Chairman, House Committee on Basic Education, Hon. Julius Ihonvbere, who frowned at the inefficiency of the Bank on housing delivery despite the warehousing over N360 billion.

“By virtue of Section 5 (a, e-f) of the Federal Mortgage Bank of Nigeria Act, Laws of the Federation of Nigeria, 2004, the Bank is mandated to provide long-term credit facilities to mortgage institutions in Nigeria at such rates and on such terms as may be determined by the Board in accordance with the policy directed by the Federal Government; collect, manage, and administer the National Housing Fund in accordance with the provisions of the National Housing Fund Act; do anything and enter into any transaction which in the opinion of the Board is necessary to ensure the proper performance of its functions under this Act.

The lawmaker who cited a media report which stated that Federal Mortgage Bank of Nigeria has over N360 billion in its kitty and yet, only an insignificant 63,000 out of the 5 million contributors have been able to access the fund over the past twenty- eight years.

“The House is worried that over 4,647,000 contributors are left at the mercy of shylock landlords all over Nigeria largely due to no fault of theirs, but the bureaucratic nature and slow pace of doing business in Nigeria.

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“The House is concerned that the bank has only been able to deliver a paltry 28,000 housing units across the country in the face of the ever-burgeoning demand for housing in Nigeria.

“The House is aware that the process of urbanisation is an ongoing trend in developed and developing countries, with urban centres in Nigeria experiencing rapid and continuous growth over the years, due to rural-urban migration.

“The House is also aware that there has been an inadequacy of the necessary infrastructure to meet the needs of the increasing urban populace as studies have shown that about 75% of urban settlers live in slums and improper housing, which is antithetical to the Sustainable Development Goals (SDG) of enhancing human dignity.

“The House is also concerned that with the pace at which the Mortgage Bank is going, a large percentage of contributors will never be able to actualise their dreams of owning a house of their own in their lifetime.

“The House is disturbed that the Federal Mortgage Bank, in spite of the large sums of contributors’ money and the force of legality at its disposal, has failed to deliver on its mandate of providing housing for Nigerians and the continuous retention of such large sums of money by the bank is a veritable source of corruption which should be discouraged,” he urged.

To this end, the House mandated the Committee on Housing to, as a matter of urgency, investigate the structure, operations and challenges facing the bank and report back within 4 weeks for further legislative action. NIGERIAN TRIBUNE