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FMBN ultimatum to bad debtors no longer stands, says REDAN

By Chris Ochayi

The Real Estate Developers Association of Nigeria (REDAN) has said the 21-day ultimatum issued to bad debtors by the Federal Mortgage Bank of Nigeria (FMBN) would no longer be tenable because a committee has been put in place to resolve the issue.
National President, REDAN, Chief Olabode Afolayan who disclosed this while speaking with journalists shortly after a closed door meeting with the Managing Director and other top management of FMBN, said there was a “fundamental error” in the list published by the bank.

While confirming that a committee has been set up to ensure amicable settlement of the issue, Afolayan added that the list would not have been necessary if the bank had credited all monies remitted by some of those affected.

According to him, “the issue at stake is a kind of fundamental error. They told us when we met with them that they had to take such action because of the Central Bank of Nigeria (CBN)’s debt recover policy and that they are quite aware of the fact that a lot of our members have paid for their houses on but according to the books the account has not been credited for one reason or the other and we came to a conclusion that members need to come to put some of this things in order and there’s a committee that has been set up together with REDAN members to be headed by an Executive Director to address the case of individual members.”

Explaining further, he said, “so we are using this opportunity to call on all the members involved including those ones that have loans to come over and discuss individual problems and I can assure you that FMBN would not go ahead with the publication of additional list”.

He said, the 21-day ultimatum given by the FMBN was no longer tenable since a committee has been put in place to resolve the issue.
“Like we said earlier, the issue of deadline does not exist any longer. We have a committee now headed by an Executive Director of the bank that is going to look into individual problems and solve them amicably with a member of REDAN in the committee”, he said.

“It is a kind of ongoing exercise by the CBN that has insisted that for commercial banks or other financial institutions immediate steps must be taken to recover the loans as long as the books are not balanced and the tenure of the loans have expired irrespective of other terms of the loan.”


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