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PMIs should divest from property development, REDAN

The Real Estate Developers Association of Nigeria (REDAN), umbrella body for estate developers in the country, has called for the divestment of primary mortgage institutions (PMIs) from property development to enable them focus on their primary responsibility of mortgage financing.

Arising from a two-day National Stakeholders’ conference on housing in Abuja, recently, the developers resolved that for housing to be made readily available and affordable, “mortgage banks must be made to squarely face their fundamental task of providing mortgage services, and stay clear of businesses that could constitute distractions to their core objectives.”

As part of resolutions reached at the conference, the developers also faulted the direct involvement of governments in housing construction in the country, deplored the increasing cost of housing provision and called on government to create a separate pool of funds for housing construction.

REDAN demanded that government as part of its social corporate responsibilities should provide basic infrastructure in sites developed, while also calling for government’s injection of more funds into the sector by way of bail out.

National President of the association, Chief Olabode Afolayan, said that the current allocation to the Federal Mortgage Bank of Nigeria (FMBN) for builders as well as that of the National Housing Fund (NHF) for potential house owners is inadequate. “Frankly, we discovered that the NHF Act and the FMBN Act need to be amended. For instance the NHF, it was enacted in 1982 and the maximum anybody can take from the FMBN or NHF is N5million and when you consider the present reality, you discover that it is not realistic any longer.

This was why we had to propose the amendments to the National Assembly and we have received the support of the House Committee on Housing and Habitat,” he said.


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