FMBN, MFF, TrustBond to Sign MoU on Housing Devt
The Federal Mortgage Bank of Nigeria (FMBN), the Millard Fuller Foundation (MFF) and TrustBond Mortgage Bank are at the verge of concluding a tripartite Memorandum of Understanding (MoU) that will help deliver a substantial number of low-income homes for Nigerians across the six geopolitical zones. This is in the bid to reduce the nation’s over 17 million housing deficit.
Briefing the media, recently in Abuja, the Country Director, MFF, a non-profit ecumenical Christian housing organisation, Sam Ordia said the scheme is being facilitated under the Affordable Housing for Economic Empowerment and Development (AHEAD) initiative.
According to him, the scheme is targeted at junior staff of federal and state agencies as well as at the informal sector, through the development of innovative and practical products such as Rent-to-Own, Collateral Replacement Indemnity and other social housing products.
Ordia said: “This programme is expected to tremendously promote economic empowerment through employment opportunities emanating from mass delivery of houses and the promotion of economic opportunities across the housing value chain.”
He said the active assistance of REALL, MFF’s UK partners, has led to the development of a business model that would firstly help the NGO deliver housing sustainably at far greater levels of scale and to prove that the affordable housing market has a veritable investment destination.
He added that through REALL’s assistance, MFF would lead the way in preparing this market for massive local and international investment.
On the need for paradigm shift in housing delivering in the country, he said: “We must take the bull by the horn and tackle to the ground the demons that have plagued the industry. And that cannot happen without a paradigm shift, a drastic departure from the approaches of the past.”
The MFF boss said a report shows that 80 per cent of Nigerians cannot afford a house that costs more than a million Naira, because of the general low income level. “At MFF, we have adopted the American definition as housing that is affordable to the median income, which is 50 per cent population of any locality, and therefore if that 50 per cent of the population cannot buy it then it is not affordable.”
According to him, the positive side of Nigeria’s housing 17 million housing deficit, almost all of which lies in this segment, means that there are about N17 trillion business opportunity from the lower-income only.
In the last nine years, Ordia said the MFF centre for housing has provided $500,000 seed funding for housing development in the country and the building of the national organization for non-profit programmes, adding that the Centre is today active in more than 15 countries. He admitted that the German Cooperation Agency (GIZ), has also given support in the area of housing development across 3 states especially in the area of building capacity on affordable housing.
In a remark, the Managing Director FMBN, Mr. Gimba Ya’U Kumo, who was represented by the Group Leader, Special Projects, Mr. Shehu Osidi, expressed determination of the bank to collaborate with MFF and TrustBond Mortgage in housing delivery to bridge the deficit, even though, he admitted that the ban on the Estate Developers’ Loan (EDL), is yet to be lifted by government.
On FMBN current project in the North-east, he said: “First we have a number of housing units in the North-east, it is part of the ministerial housing project that has been delivered across different geographical zones of the country; but specifically for the North-east, we have a programme to accommodate the Internally Displaced Persons (IDPs).”
He said FMBN has also introduced the Home Renovation Loan (HRL) to assuage the devastation in the Northeast, adding: “So we are focusing on that part of the country so that individuals that have their houses destroyed can get some respite by accessing the home renovation loan with the view to renovating their houses.”
While expressing optimism that the tri-partite arrangement would yield the desired result, he urged Nigerians to take interest in the project for their housing needs, adding that there is need for strong political will on the part of government to make housing delivery work. He said provision of infrastructure across housing estates by government would bring down the cost of housing.
Also speaking, the Head of Business Development, of TrustBond Mortgage bank, Mr. Genga Alamu assured that the collaboration among the three organisations would in no small measures lead to reduction in housing deficit if the understanding was implemented properly.