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FMBN disburses N15.7 billion loan for home renovation

By Chris Ochayi

The Federal Mortgage Bank of Nigeria, FMBN, has disbursed a total sum of N15.7 billion to 19,169 beneficiaries across the country under the Home Renovation Loan window. This was disclosed  by the Managing Director of the apex mortgage bank, Ahmed Dangiwa, an architect.

Dangiwa, who said this during the presentation of N640 million cheques to 640 of FRSC headquarters in Abuja, under the home renovation scheme assured that the bank was determined to perform creditably well in the discharge of its mandate given the lean resources at its disposal.

Noting that the efforts were through collaboration with the bank to address housing needs of FRSC staff, Dangiwa disclosed that the bank approved the sum of N1.8 billion loan for 195 staff of FRSC as mortgage loans for the purchase of their own houses

He also added that, a total sum of N1.2 billion loan had been disbursed to personnel of Federal Road Safety Corps, FRSC, under its Home Renovation Loans scheme so far.

The FMBN boss who enumerated encumbrances associated with housing finance in Nigeria, noted that, “In consideration of these challenges, it became necessary for FMBN to develop some quick-wins that will allow a greater number of Nigerians access to the National Housing Fund. Consequently, the FMBN Home Renovation Loan was introduced by the bank.

“The loan window affords Nigerians who are contributors to the NHF an opportunity to access mortgage loans to renovate or improve existing properties which are personally owned by them or through family ownership.

“Compared to regular mortgage, the requirements for this loan have been made very liberal. These include the signing of a Memorandum of Understanding and the execution of Letters of Undertaking by the various state governments, collaborating agencies (federal & state) and employers for the deduction and remittance of loan repayments to the bank, in addition to the provision of two (2) guarantors by the applicants.

“At this juncture, permit me to applaud the commitment and cooperation of the Corp Marshal, Dr. Boboye Oyeyemi, in executing these documents promptly, which has enabled the Federal Road Safety Corp members to benefit from FMBN Home Renovation Loans from the Federal Mortgage Bank of Nigeria.

“Today we are witnessing the presentation of cheques amounting to N640 million to 640 beneficiaries. This brings total disbursement to FRSC to N1.2 billion for 1,207 beneficiaries across the country.

“This is in addition to the sum of N1.8 billion approved for 195 staff of FRSC as mortgage loans for the purchase of their own houses. This is a clear demonstration of the Corp Marshal’s unique concern for the welfare of Federal Road Safety Corp members through collaboration with the FMBN to address their housing needs.

“It is pertinent to note that a total sum of N15.7 billion has so far been disbursed by FMBN to 19,169 beneficiaries across the country under the Home Renovation Loan window.”

The FMBN boss recalled that, just recently, one of the most ambitious housing delivery programmes in this country, the National Affordable Housing Delivery Programme, NAHDEP, in collaboration with the Nigerian Labour Congress, NLC, the Trade Union Congress, TUC, and the Nigerian Employers’ Consultative Association, NECA, was launched by the bank.

“It is a programme to deliver affordable houses for Nigerian workers in every state of the federation. As we speak, the pilot projects have commenced in earnest in 14 states. The first phase is to deliver 100 houses in each of the  two states across the six geopolitical zones of the country with two special sites in Abuja and Lagos.

“While the bank continues to face considerable challenges particularly on its lack of adequate capital, all these indices indicate that we have performed creditably well in the discharge of our mandate given the lean resources at our disposal.

“We have also given succour to Nigerians with the cancellation of equity requirement for NHF loans under N5m and a reduction in equity percentage payment to 10 per cent for loans from N5m to N15m from the initial 20 per cent to 30 per cent. This is bound to further boost the affordability of many Nigerians in accessing mortgages.

 

 

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