Federal Mortgage Bank Delivered 39,000 New Homes in 31 Years- MD

The Federal Mortgage Bank of Nigeria, (FMBN) said it delivered 39,000 new homes under the National Housing Fund (NHF) scheme within 31 years.

Managing Director/Chief Executive, FMBN, Shehu Osidi, said this when he presented a paper, titled “Financing the housing we need: A new dawn at FMBN as an institutional enabler’’ at the ongoing 18th Africa International Housing Show on Wednesday in Abuja.

Osidi said: “Since its re-establishment in 1993, the bank has delivered about 39,000 new homes, about 25,500 mortgages and over 120,000 micro housing loans, all within a single-digit interest rate lending regime. Under the National Housing Fund scheme, it has registered 26,350 organisations and over 5.8 million cumulative contributors with over 1 million accounting for the self-employed sector. The bank has disbursed the cumulative of N440 billion under its various loan windows to drive affordable housing finance for the Nigerian economy. To its record, the sum of N84.8 billion has been refunded to 492,604 contributors who exited the scheme in line with the provisions of the NHF Act.’’

The bank’s Managing Director/Chief Executive disclosed that the bank initiated constructive engagement with the Federal Ministry of Finance to secure refunds of the wrongful deductions of NHF contributions misconstrued as revenue under the 40 per cent deduction regime of revenue accruing to federal agencies.

He said “This led to the recovery of N12 billion out of the outstanding N19 billion into the bank’s coffers.

“We are still engaging relevant authorities until the deductions are stopped and we recover the outstanding balance of the trapped NHF funds.’’

Osid revealed that the bank has expanded its bouquet of loans from mortgage financing, to housing construction, to micro housing financing and more recently, a rent-to-own product over these years, stressing that with the rapidly changing landscape and growing need for affordable housing financing, FMBN’s clientele base had widened.

According to him, the clientele base had widened from solely primary mortgage banks to private and public real estate developers, housing cooperatives and now to individual NHF contributors for home self-construction.

He announced that the latest additions to its loan products are the home improvement and rent assistance loans, which are micro housing loans specifically intended for but not exclusive to the non-salaried informal sector.

In his words “Though these numbers may seem modest in the face of the yawning gaps in the housing sector, FMBN has not failed to be a major contributor to the development of the sector. The current Executive Management desires to transform FMBN into an institution that delivers on its promises and is responsive to the yearnings and aspirations of its stakeholders. This includes contributors, loan beneficiaries, regulators, partners as well as staff.’’

Osidi highlighted that after careful and critical examination of the bank and where it needed to be in the near future, the new executive management unveiled a seven-point agenda on assumption of office in February and this included, recalibrating FMBN automation process to fully exploit all that technology can offer across all our business processes, promoting cost efficiency, enhancing credit quality and reducing non-performing loans, effective project management and expanding strategic partnerships, enthroning a robust organisation and employee performance management system and standardised capacity building and talent management.

“We recognise the place of human resources in transforming organisations and accordingly, this management will be deliberate in the way we approach our capacity building efforts and training programmes. We will also try as much as the system permits to put round pegs in round holes as well as be deliberate on the issue of succession planning,” he added.

Osidi pledged that they want to make FMBN a good place to work and fulfill employee’s aspirations, adding that the bank had consistently served the needs of the Nigerian populace within the limits of its resources and would continue to do so in line with its mandate.