The Federal Mortgage Bank of Nigeria (FMBN), has said it may to consider offering existing loan beneficiaries between 180 and 360 days of moratorium due to the ravages of the coronavirus (COVID-19) pandemic in the country.It also plans to engage mortgage beneficiaries to discuss the challenges that may arise with their primary financial institutions, while encouraging customers that are able to service their loans to continue to do so.
The Managing Director of the Bank, Ahmed Dangiwa, at a media parley in Abuja, noted that the current development makes full automation and digitalisation of all operations nationwide, imperative.
He also added that credit facility during the period of pandemic will most likely shrink, and there would be more stringent measures from the private sector, as repayment may likely increase due uncertainties over household incomes, “so we want to sustain our activities to help stabilise the sector.”
His words: “Economists are predicting economic slowdown for the 2nd and 3rd quarters of the year, coupled with the drop in oil prices. This would have impact on federal government’s revenue, and during the pandemic period, the Nigerian economy will be negative.”
Explaining further, Dangiwa maintained that prices of existing stock of houses will likely drop as new ones come on stream, and real estate developers would equally come under intense pressure to sell off, as lower prices are envisaged for niche buyers, who have steady income.
He disclosed that the bank’s lending operations were adversely, while assuring Nigerians that as a development finance institution, “we will be at the forefront of the President’s economy recovery, and employment generation.
“Housing development is one of the most viable activities to grow an economy. Therefore, we would continue to disburse loans for mortgage to national housing fund applicants, and construction funding for housing estate development to cooperative societies for affordable housing delivery,” he added.
