…Plans to recover another N43 billion within next 18 months
…Inches closer to N500 billion recapitalization
By Chris Ochayi
ABUJA: The management of Federal Mortgage Bank of Nigeria, FMBN, said it has recovered N5.4 billion loan owed to the bank by debtors in the last two years.
The bank also announced that it is working in partnership with the Special Presidential Investigation Panel for the Recovery of Pubic Property in a move that would likely lead to recoup N43billion from the Bank’s debtors within the next 18 months.
The Managing Director of FMBN, Arc. Ahmed Musa Dangiwa, who disclosed this at the 2018 Annual Management Retreat in Kano state, would be targeting robust capital base of N500 billion when the key amended laws of National Housing Fund, NHF, is assented to by President Muhammadu Buhari.
Arch. Dangiwa, who spoke through Mrs. Zubaida Umar Group Head, Corporate Communications, FMBN, via a statement issued in Abuja, was quoted as saying, that “The bank has notched significant milestones in its strategic plan to reform and reposition the Institution as a more effective provider of safe, decent and affordable housing for Nigerians despite many challenges.
The Managing Director, specifically revealed at the retreat with the theme “Improved Transaction Turnaround Time: Getting it Done”, that “After twelve years of failed attempts at institutional restructuring, Management’s proactive stakeholder engagement drive has resulted in the successful passage of key amendments to the Laws establishing the Institution and the National Housing Fund, NHF, by both chambers of the National Assembly.
“The amended laws, when assented to by the President, would birth a new, more independent and financially stronger FMBN with a robust capital base of N500 billion.
“The additional liquidity and operational flexibility will greatly enhance FMBN’s capacity to more effectively deliver on its mandate to provide access to affordable mortgage finance for home ownership by Nigerian workers.”
He said, “The Bank has made significant progress in its loan recovery drive. This includes the recovery of over N3billion so far in 2018, in addition to the N2.4billion recorded in 2017. To strengthen this, the Bank is working in partnership with the Special Presidential Investigation Panel for the Recovery of Pubic Property in a move that is likely to recoup N43billion from the Bank’s debtors within the next 18 months.”
He reported that the Bank was strengthening its collaboration with its key stakeholders, especially the labour unions, whose members constitute the bulk of contributors to the National Housing Fund Scheme.
This has culminated in the commencement of a need-targeted housing delivery program across the country – the National Affordable Housing Delivery Programme, NAHDEP, for Nigerian workers, in collaboration with the Nigeria Labour Congress, NLC,, the Trade Union Congress, TUC, and the Nigeria Employers’ Consultative Association, NECA.
According to him, “Groundbreaking ceremonies have been done and construction work has commenced in earnest in five states, spread across the six geopolitical zones of the country. Others are in the pipeline as we intend to cover every State across the country. Part of the central focus is to establish a template for affordable housing delivery in Nigeria.
“Accordingly, the implementation concept is unique with the housing designs and bill of quantities (BoQ) directly commissioned by the Bank to ensure the profit motive is greatly minimized.
“This template has given us the leverage to guarantee that the selling prices for the housing units range between N3.1m and N8.3m for 1, 2 and 3 bedroom dwellings”
Dangiwa assured Staff of Management’s commitment to creating conducive work environment; he commended them for their hard work and encouraged them to continue to strive towards repositioning the Bank on the path of sustainable growth and visible impact.