Federal Mortgage Bank is on course to solve Nigeria’s housing challenges
The Managing Director and Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), Arch. Ahmed Musa Dangiwa has said the bank is working assiduously in addressing the housing yearnings of Nigerians. He made this pledge on Monday 7th February during a ‘One-On-One with CEOs’ organized virtually by the Executive Director, Housing Development Advocacy Network (HDAN), Barr. Festus Adebayo and monitored by members of the press.
The FMBN Managing Director said the bank has achieved a lot in recent times particularly in the last four and half years by greatly increasing the number of housing units across the country to alleviate the challenges faced by Nigerians.
Arc. Dangiwa said the bank is currently building over 12,000 housing units across the country and has created more than 200,000 jobs. He revealed, there have been a 98 per cent increase in disbursed loans which rose from N152billion to N302billion in 2017.
According to him, over N151billion was also given out for housing loans over a period of five years around N37 billion disbursed annually. He stressed that, the organization under his watch has created collaboration with labor unions to create an enabling atmosphere to accommodate affordable housing.
On the impact of Home Renovation Loans, he said 75, 000 Nigerians have benefited from the scheme and from each, at least 3 jobs are created and that in the last two years, over a million jobs have been created including direct and indirect labour.
On the informal sector he said, a majority of Nigerians including the traders, road side mechanics and all those involved in menial jobs are carried along as there are measures put in place by the bank to accommodate more of them believing, they too would create jobs for others.
Speaking on the digitization of the system to fast tract the processing of documentation, the MD said, the platform is opened to all Nigerians and would reduce the idea of coming to fill manual forms hence the online platform would reduce stress and distance barrier which would ease the access to loans by Nigerians.
Notable achievements under the period under review include reduction in equity for access to more startups, introduction of ‘rent to own’ strategy to offer houses without payment or equity as well as the digitalization of the system to enhance easy banking operations, this will help the diaspora communities in keeping track of activities of the bank.
On the uncompleted projects left behind by the banks’ outgone management, he said, ‘five of such projects out of 21 have been completed by his leadership while others are at various stages of progress.
On housing development in Nigeria, Arch. Dangiwa said, all the 36 state governors were sent letters of appeal to contribute land not below 5 hectares for the Bank to develop in other to reduce the housing challenges of people of the states. Out of the 26, only 12 states accepted and complied for this development to take effect.
It is interesting to note that, the 12 states that contributed land have the buildings ready and for their benefit.
Nigerians attitudes towards the non-performing loans, the DG decried that, many people seek and obtain the loans only for them to default and abscond. In view of the this, the bank has engaged the services of Land Recovery Agents such as lawyers and other parties to help it in the process of recovering the loans, the bank has succeeded in recovering some of the monies from those who never wanted to pay even as the loans are risk free.
On the quality of work done, he expressed with pride that, they have qualified people and professionals who are saddled with the responsibility of designing and planning the actual designs before work begins.
When asked about the challenges faced by the bank in the disbursement of loans, Arch. Musa stated that, the primary mortgage banks are those from whom mortgages are created from but when loans are approved for the primary mortgage banks, they find it difficult accessing a full part of it, what they get from the full approval is 40%, while the 60 per cent of it is held down due to conditions.
He therefore assured Nigerians of the bank’s commitment to the development of the country through continuous redevelopment of the housing sector to eradicate housing challenges and also the disbursement of soft loans to aid members of the public to become owners of their own properties.
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