FMBN dis­burses N7­bil­lion loans to 800 ben­e­fi­cia­ries

•44,370 hous­ing fund con­trib­u­tors gets re­funds

The Guardian (Nigeria) - - BUSINESS - From Cle­ment Nwoji, Abuja

THE Fed­eral Mort­gage Bank of Nige­ria (FMBN), has dis­bursed more than N7­bil­lion as mort­gage loan to over 800 ben­e­fi­cia­ries this year, as part of ef­forts to­wards bridg­ing the hous­ing deficit cur­rently put at 17 mil­lion.

Fur­ther, in re­spect of the Na­tional Hous­ing Fund (NHF) con­tri­bu­tions, the Bank said it has made a to­tal re­fund pay­ment of N6.6bil­lion to 44,370 ben­e­fi­cia­ries in 2017 against a cu­mu­la­tive fig­ure of N7.4bil­lion as at 2016.

The Man­ag­ing Direc­tor, FMBN, Ahmed Dangiwa, gave the statis­tics on Wed­nes­day, while speak­ing at a two-day man­age­ment re­treat of the bank, with the theme: “To­wards im­prov­ing FMBN trans­ac­tion turn­around time.”

The re­treat is meant to re­view the bank’s cur­rent pro­cesses and pro­ce­dures, and to rec­om­mend strate­gies that will trans­late into con­sid­er­able re­duc­tion in time, costs in­curred in the pro­cess­ing of trans­ac­tions.

He ex­pressed op­ti­mism on the fu­ture growth of the NHF, cit­ing that due to strate­gic en­gage­ments, sev­eral non-con­tribut­ing states had in­di­cated in­ter­est to re­join the scheme in the first quar­ter of 2018.

Dangiwa also said the fo­cus of the bank on its loan projects is to en­sure that com­ple­tion of on­go­ing projects and re­cover its fi­nan­cial out­lay presently tied down. “This, we have done ag­gres­sively with over N2.4bil­lion re­cov­ered so far this year against a cu­mu­la­tive fig­ure of N8.3bil­lion as at 2016. The bank is also mi­cro­manag­ing some of the es­tates to fore­stall diver­sion of funds and en­sure we re­cover our loans”, he said, were mea­sures be­ing taken to pro­tect the bank and its in­vest­ments.

The FMBN boss de­cried that since as­sump­tion of of­fice in April, the man­age­ment was con­fronted with daunt­ing chal­lenges. Th­ese in­clude ab­sence of au­dited ac­count for the past five years, lack of proper au­toma­tion of the bank’s op­er­a­tions, aban­don­ment/ un­com­pleted projects with huge non­per­form­ing loan and un­der­cap­i­tal­i­sa­tion and cre­ation of par­al­lel plat­forms for fi­nanc­ing home own­er­ship by Cen­tral Bank of Nige­ria in­stead of pro­vid­ing in­sti­tu­tional sup­port for FMBN.

While declar­ing the event open, the Min­is­ter of State II for Power, Works and Hous­ing, Suleiman Has­san Zarma, in an ad­dress on: “Driv­ing Hous­ing De­liv­ery in Nige­ria: Cur­rent Ini­tia­tives and Poli­cies,” noted that FMBN be­ing the apex mort­gage in­sti­tu­tion oc­cu­pied a cen­tral po­si­tion in the hous­ing sec­tor.

He de­clared that the chal­lenges of na­tional hous­ing deficit, dearth of long term fund­ing, and high cost of de­liv­er­ing af­ford­able hous­ing to Nige­ri­ans placed enor­mous re­spon­si­bil­i­ties on the bank.

He said: “The great­est chal­lenge of the bank is to en­sure ad­e­quate liq­uid­ity, de­velop the sec­ondary mort­gage mar­ket and pro­mote home own­er­ship among Nige­ri­ans through rea­son­able mort­gage fi­nanc­ing,” cit­ing that the present ad­min­is­tra­tion awarded con­tracts for the con­struc­tion of 2,736 hous­ing units across the states in 2016.

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