FMBN raises hope on NHF, grows collection 300% to N2.5bn in 3yrs

The new computerisation of operations by the Federal Mortgage Bank of Nigeria (FMBN) may lead to actualisation of the homeownership dream of contributors to the National Housing Fund (NHF), according to Gimba Kumo, managing director of the bank.

At a media interactive session in Abuja, Tuesday, Kumo said the improved operations of the NHF had brought about an increase in its collections by about 300 percent to N2.5 billion, up from N700 million three years ago.

He said since assumption of office of the present management of the apex mortgage bank in 2010, the bank had been able to put in place processes aimed at easing the operations of NHF and also making access to loan facility by contributors less cumbersome.

“We have also moved FMBN from manual to fully computerised operation,” Kumo said.

“We now have e-collection process for the NHF. This process is now on-line and real time. When we did that, we also came up with e-cards which we have started distributing to NHF contributors,” he said.

Akon Eyakenyi, minister of lands, housing and urban development, at the session explained that the establishment of the Nigeria Mortgage Refinance Company (NMRC) was a major boost to the operations of FMBN, pointing out that contrary to insinuations that it was coming to do the work of FMBN, the company had come not only to complement FMBN, but also to enhance its operations.

She added that NHF contributors would be the primary off-takers of the 10,000 housing units soon to be provided by the ministry.

Speaking further, Kumo said that looking at all FMBN portfolio in the past 22 years of its existence, 45 percent of those portfolio which had been created through mortgage or estate development loan were created within the past three years of his team’s coming on board.

“Since the launch of NMRC, which is aimed to increase mortgage penetration and create sustainable liquidity in the mortgage market, we have been given marching orders by this ministry to deliver affordable housing on sustainable basis, which is why the ministry came up with the ministerial housing projects that we have in 36 locations across the six geo-political zones of the country,” he said.

“We have, as at today, delivered 2,500 housing units under this project. We will also, this November, deliver a special project which is the first of its kind not only in Nigeria but also in West Africa because it drives its own power, sewage and water systems,” he added.

Eyakenyi emphasised the resolve of the Federal Government to bring down the cost of construction and make housing truly affordable to the medium and low income earners who are the government’s main target in its affordable housing project.

“Our government has interacted with the relevant stakeholders to reduce the cost of building. We know that what makes the cost of building high has to do with materials, cost of construction and the cost of land,” she said.

“To ensure that we reduce the cost of construction, government will give land free to developers. To achieve this, we are partnering with state governments to provide this land on which we may pay compensation and the title is given. At this point, the developer comes in to build and by this arrangement, the cost of land is taken off the cost of the houses when they are ready,” she further said.

The other initiatives, she disclosed, include negotiation with manufacturers to sell building materials like cement, roofing sheets and rods to developers at factory price, and brokering mortgage facilities for the buyers through the instrumentality of the NMRC and the primary mortgage lenders.

CHUKA UROKO