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FMBN offers N2bn housing loan to Oyo State

By Yinka Kolawole

Federal Mortgage Bank of Nigeria (FMBN) has offered a housing loan of N2 billion to the Oyo State Government under the National Housing Fund (NHF) Scheme.

Mr. Gimba Ya’u Kumo, Managing Director/Chief Executive Officer of FMBN, disclosed this in Ibadan, Oyo State capital when the management of the bank paid the governor a courtesy visit last week.

Kumo noted that Ibadan is one of the biggest cities in Africa and because of its housing deficit, the housing situation in the state requires drastic attention, adding that is the reason “FMBN is offering the Oyo State Government a N2 billion facility to construct housing estates in the state”.

He envisaged that the loan facility can finance the state government’s proposed Ajoda Housing Estate in partnership with Coop Building Society Limited, or any other estate developer of the State Government’s choice.

The FMBN boss explained that the NHF scheme is a mandatory savings scheme for Nigerian workers from which they can access mortgage loans at low interest rates to build, buy or renovate residential houses in any part of the country.

He added that under the NHF scheme, FMBN has registered 60,659 NHF contributors in Oyo State and these contributors have made a total of N536 million contribution to the scheme. Kumo said the bank has refunded N31.5 million to the state contributors who have retired from service.

The bank has also invested a total of N730 million in Oyo State through an Estate Development Loan of N400 million for construction of 216 housing units by a private estate developer, Tola Tos Nigeria Limited, and mortgage loans of N330 million to Coop Building Society Limited (as housing loans to 217 contributors under the NHF scheme).

It is indeed on record that Coop Building Society Limited is the first primary mortgage institution in Nigeria to access mortgage loans for building houses under the NHF scheme.

Kumo further disclosed that the FMBN is planning to use Oyo State as a pilot scheme aimed at bringing the informal sector of the economy into the NHF scheme as contributors and beneficiaries.

Governor Ajimobi lauded FMBN’s bold move, remarking that shelter is one of the cardinal programmes of his administration aimed at providing improved welfare package for the people of Oyo State. He accepted the N2 billion housing loan offer to the government and directed that a committee involving the State Government and the FMBN should be set up to work out the modalities for execution of the housing project.


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