The current management of the Federal Mortgage Bank of Nigeria (FMBN) has, in the last 24 months, changed the story of the apex mortgage bank that had been underperforming with very little impact on the country’s mortgage sector which it superintends and the housing sector it is supposed to catalyse.
Between April 2017 and March 2019, the bank posted strong performance by disbursing mortgage loans to National Housing Fund (NHF) subscribers, home renovation, estate development and cooperative development totalling N58 billion.
A breakdown of the loan disbursement shows that N22.3 billion was given out as NHF loans to 3,171 workers; N16.9 billion was given out for home renovation loans to 20,429 workers; N13.6 billion was given out for estate development; N2.7 billion went to cooperative development, while ministerial pilot housing scheme project got N2.5 billion.
The high level of loan disbursements, averaging N29 billion per annum, represents a significant increase in performance when compared to the N152 billion which the bank had given out over a 24-year period (1992-April 2017) at an average of N6.3 billion per annum.
Additionally, the FMBN also posted strong performance in the processing of applications for refund of contributions to the NHF by workers who have retired from service. The bank successfully processed 120,759 NHF refund cases and paid out a total of N16.5 billion between April 2017 and March 2019.
The amount the new management has recorded in terms of NHF refunds within the period under review exceeds N10.8 billion the bank recorded between 1992 and April 2017, when the current management took office. The bank also funded the construction of 6,538 housing units across the country.
All these records are in line with the bank’s determination to improve service delivery and extend access to its affordable housing solutions by more Nigerian workers.
“These results reflect the passion of the present management to reposition the FMBN on the path of greater impact, responsiveness, and professionalism,” Ahmed Dangiwa, FMBN’s CEO, noted in a statement signed by Zubaida Umar, group head, corporate communications of the bank.
“I am indeed very pleased at the remarkable results that we have been able to achieve in about two years since we were appointed to run the affairs of the Bank,” Dangiwa added in the statement obtained by BusinessDay.
The chief executive pointed out that the records demonstrated their determination to justify the confidence of President Muhammadu Buhari in their capacity to reform the FMBN as an effective tool in the hands of government to tackle the lingering housing deficit.
“The FMBN remains the best route to affordable homeownership for the Nigerian worker and we seek the support of all housing industry stakeholders in our bid to transform and reposition it to deliver on its mandate of providing affordable social housing,” Dangiwa said.
CHUKA UROKO & ISRAEL ODUBOLA
