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FG begins full commercialisation of Federal Mortgage Bank

As part of ongoing reform in the Housing sector, the federal government has commenced a process that would see the repositioning of its owned Mortgage Bank (FMBN) as a profitable entity.

Alex Okoh, director-general, Bureau of Public Enterprises (BPE), said efforts to reposition the bank are for optimum performance and to bridge the country’s huge housing deficit estimated at 22 million as at 2019.

Consequently, the BPE on Wednesday inaugurated an 8- member committee for the Full commercialisation and recapitalisation of the Bank.

The Joint Technical Committee (JTC) which has 60 days to conclude set task comprises four members each from the Bureau of Public Enterprises (BPE) and the Federal Mortgage Bank of Nigeria (FMBN).

The Committee is expected to among others things; conduct a diagnostic review of the Bank’s existing institutional framework, organisational structures and operational modality.

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The committee would review and harmonise all existing policies, law and regulations governing mortgage banking in Nigeria in order to identify areas that would facilitate the implementation of full commercialization and recapitalization of the FMBN.

The Committee is also expected to harmonise and synchronize all the reform processes of the FMBN with the ongoing reform of the Housing sector; develop strategies on how to reform FMBN that would enable it to raise funds from the money and/or capital markets without government guarantees. It would further undertake a review of the legal, institutional and operational frameworks of mortgage banking in a few African counties and other emerging economies with a view to learning from their key success factors (KSFs) that can be replicated.

Officials of the BPE had met with the Management team of FMBN mid February for talks on the proposed plan for the commercialisation of the bank in line with its 2021 workplan and as approved by the National Council on Privatisation(NCP).

The proposal is also in line with the ongoing efforts of the FMBN’s Management to reposition the Bank, for better delivery as articulated in the 5-year strategic plan developed by the Bank.

“It was after this that it was resolved that a joint Technical Committee be constituted to prepare the bank for commercialisation and re-capitalisation by reviewing the 5- year strategic plan with the view of embedding it within the overall reform plan of the Bureau for FMBN,” Okoh stated.

He said members were chosen in recognition of their wealth of knowledge and expertise in the reform project and expressed the hope that the outcome of their assignment would pave way for the transformation of FMBN into a viable entity that would play a pivotal role in the housing sector value chain.

He said the assignment is of critical national importance and encouraged the members to approach it with the highest sense of responsibility.

Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Ahmed Musa Dangiwa pledged support for the Commercialisation and Recapitalisation process and raised optimism that the new initiative would help address the huge housing deficit in the country.

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