• Friday, March 01, 2024
businessday logo

BusinessDay

FMBN refinances N32bn mortgages for FCT workers

businessday-icon

The Federal Mortgage Bank of Nigeria (FMBN) said on Friday that it had refinanced more than N32 billion mortgages for workers to buy houses in Abuja.

Mr Gimba Kumo, the Managing Director of the bank, said this in an interview with the News Agency of Nigeria (NAN) in Lagos.

He said that the amount was invested to assist workers to buy the non-essential residential Federal Government houses in Abuja.

Kumo said that the houses were financed by Mortgage-Backed Bonds (MBB).

“The FMBN arranged the MBB as part of its capital market operations, with the support of the Federal Ministry of Finance. The amount helped about 13,750 workers in the FCT to buy and own their houses in Abuja.

“The first series of the MBB was floated in 2006. Then, the second and third series were done in 2012,” he said.

The managing director said the bank had embarked on a Ministerial Housing Pilot Project, to deliver affordable houses for Nigerian workers.

According to him, this is in collaboration with the Federal Ministry of Lands, Housing and Urban Development.

He said that the allocation of the houses, when completed, would be targeted at Nigerian workers.

Kumo said that so far, 28 states and the FCT were contributing to the National Housing Fund (NHF) scheme.

He said that it was necessary for more workers, both in the formal and informal sectors, to join the scheme.

According to him, the NHF is working and there is transparency and accountability in its operations.

He said that the success of the ministerial housing pilot projects would help the apex mortgage bank to go for another series of MBBs in the capital market.

The NHF was established in 1992 and started the first loan disbursement to beneficiaries in 1997.

The contributor is entitled to a loan of up to N15 million at six per cent interest rate, with about 30 years repayment period.