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  • Dangiwa pushes for N500b recapitalisation of FMBN

    Dangiwa pushes for N500b recapitalisation of FMBN

    The Minister of Housing and Urban Development, Arch Ahmed Dangiwa, said he is particular about pushing for the N500 billion recapitalisation of the Federal Mortgage Bank of Nigeria (FMBN).

    He said the move is a conversation that has been going on for too long and now is the time to get it done and he is committed to driving it.

    The Minister said this at the Bank’s 2024 Management Retreat held in Abuja.

    Dangiwa also urged FMBN to make greater effort towards reducing its non-performing loan portfolio and the clearance of backlogs of its audited accounts.

    His words: “I am also particular about the N500billion recapitalisation of the bank. It is a conversation that has been going on for too long. Now is the time to get it done and I am committed to driving it.

    “FMBN should also make greater effort towards reducing its non-performing loan portfolio and the clearance of backlog of its audited accounts. A major step to take in this regard is to ensure efficient processing and approval of corresponding NHF loans for all completed projects, to ensure effective off-take and inter-account settlement in order to clean up the bank’s books.

    “I also expect to see measurable progress in the implementation of the revised 5-Year Strategic Plan. I believe you must have realised by now that achieving those targets requires a lot of dedication, commitment, and resources.

    “The broad ambition of the current administration is to create a $1trillion economy in Nigeria within the next ten years. Therefore, our trajectory in the housing sector must move towards putting a large chunk of this on the table. In this direction, we must deliberately seek to continually increase the real estate sector contribution to the GDP to fulfil its projected role as the bedrock of economic growth and wealth creation. It is with this in mind that we inaugurated the four (4) different Task Teams to work towards instituting critical reforms in the housing sector.”

    Managing Director FMBN, Mr Madu Hamman said the bank has embraced visionary innovations through its partnership with private developers, state governments, cooperatives, labour centres and other stakeholders to deliver affordable housing for Nigerians.

    He added, “Accordingly, the FMBN has taken the bold and visionary initiative in embracing transformational innovation in various ways. We have been partnering with private developers, state governments, cooperatives, labour centres and other stakeholders to deliver affordable housing for Nigerians.

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    “Furthermore, as part of the drive to enhance the Bank’s operational effectiveness, the Bank has created and approved a number of innovative policies that streamlines the Banks procedures and processes with international best practices that include: An Enterprise Risk Management Framework (ERMF), A Corporate Governance Framework (CGF), Anti-money laundry and combating the financing of terrorism (AML/CFT) policies, Environmental & Social Risk Management Framework, Confidentiality Policy and Disclosure Policy.

     “Additionally, in furtherance of the Bank’s mandate to provide accessible and affordable housing finance to Nigerians, the FMBN eased the equity requirements on NHF mortgage loan as follows: NHF mortgage loans of N5 million and below reduced from 10% to 0%; NHF mortgage Loans of N5 million – N10 million reduced from 20% to 10%; and NHF mortgage Loans of N10 million – N15 million reduced from 30% to 10%.”

    “Furthermore, the Bank also revamped its product line up by introducing new products and services that seeks to widen its customer base and cater more for its existing customers. These new products and housing programs include: Approval of the NHF Individual Construction Loan, Approval of the Rent-to-Own product and Revamping of the Cooperative Housing Development Loan (CHDL).

  • FMBN to assist NITDA workers own houses

    Federal Mortgage Bank of Nigeria (FMBN) has expressed its willingness to assist the National Information Technology Development Agency (NITDA) workers to own houses in Abuja and environs.

    FMBN Managing Director/Chief Executive Officer (MD/CEO) Ahmed Dangiwa gave the assurance when  NITDA Director-General (DG), Isa Ali Ibrahim Pantami, and some officers of the agency paid a courtesy call on the bank in Abuja.

    This was in response to a request by the NITDA chief on the FMBN to support the agency’s staff members  to get housing loans.

    He said part of the bank’s focus was to strengthen  the partnership with its stakeholders.

    He said the bank deals many  stakeholders, such as the Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and Nigeria Employers Consultative Association (NECA) to deliver over 100 houses in every state.

    He, therefore, urged NITDA to, also, avail itself of the bank’s mortgage products.

    “We will designate a desk officer who will liaise with your organisation to further guide you on how to access these products and services,” Dangiwa said.

    He expressed FMBN’s gratitude to the agency for  granting the bank certification for the procurement and deployment of its core banking application, saying it would consolidate the bank’s effort in its automation.

    Earlier, Pantami said the agency’s mission to the bank was to improve relationship between the two institutions.

    He said: “I know if you want your staff to do well, you have to take care of them.”

    Pantami said NITDA was established to implement the national IT policy and serve as a clearing house for all government institutions, set up a committee to look into how its staff could get affordable accommodation in Abuja.

    He explained that housing was one of the main challenges of staff members of the agency, which he wanted FMBN to help solve.

  • FMBN disburses N58b in 24 months

    The Federal Mortgage Bank of Nigeria (FMBN) has said it disbursed mortgage loans totalling N58 billion between April 2017 and March this year.

    A statement by the bank’s Group Head, Corporate Communications, Mrs. Zubaida Umar, said the amount covered the provision of National Housing Fund (NHF) mortgage loans to 3,171 Nigerian workers valued at N22.3 billion; home renovation loans of N16.9 billion to 20,429 Nigerian workers; estate development loans of N13.6 billion; cooperative development loans of N2.7 billion and ministerial pilot housing scheme project of N2.5 billion.

    The loan disbursements, averaging N29 billion per annum, she said “represents a significant increase in performance in comparison to the N152 billion, which the bank had given out over a 24-year period at an average of N6.3 billion per annum (1992 – April 2017)”.

    Additionally, the FMBN also posted strong performance in the processing of applications for refund of contributions to the National Housing Fund (NHF) by workers who have retired from service.

    “The company successfully processed 120,759 NHF refund cases and paid N16.5 billion between April 2017 and March 2019. The amount, which the management has recorded in terms of NHF refunds in about 24 months, exceeds the total of N10.8 billion recorded between 1992 and April 2017, when the current management took office,” the statement said.

    The FMBN, within the period, also funded the construction of 6,538 housing units across the country.

    The bank’s Managing Director/Chief Executive, Ahmed M. Dangiwa, explained that the results reflected the passion of management to reposition the FMBN on the path of greater impact, responsiveness and professionalism.

    He said: “The remarkable results we have been able to achieve are within about two years we were appointed to run the affairs of the bank. They demonstrate our determination to justify the confidence President Muhammadu Buhari has in our capacity to reform the FMBN as an effective tool in the hands of government to tackle the lingering housing deficit.

    “The FMBN remains the best route to affordable home ownership for the Nigerian worker. We seek the support of all housing industry stakeholders in our bid to transform and reposition it to deliver on its mandate of providing affordable social housing.”

  • FMBN disburses N58bn, in 24 months

    The Federal Mortgage Bank of Nigeria (FMBN) has between April 2017 and March 2019, disbursed mortgage loans totaling N58 billion.

    A statement signed by Mrs. Zubaida Umar Group Head, Corporate Communications, FMBN said the amount covers the provision of National Housing Fund (NHF) Mortgage Loans to 3,171 Nigerian workers valued at N22.3bn, Home Renovation Loans valued at N16.9 billion to 20,429 Nigerian workers, Estate Development Loans valued at N13.6 billion, Cooperative Development Loans totaling N2.7 billion and Ministerial Pilot Housing Scheme Project at N2.5 billion.

    The high level of loan disbursements, averaging N29 billion per annum she said “represents a significant increase in performance in comparison to the N152 billion, which the bank had given out over a 24-year period at an average of N6.3 billion per annum (1992 – April 2017).”

    Additionally, the FMBN also posted strong performance in the processing of applications for refund of contributions to the National Housing Fund (NHF) by workers who have retired from service. “The company successfully processed 120,759 NHF refund cases and paid out a total of N16.5 billion between April 2017 and March 2019.  The amount, which the Management has recorded in terms of NHF refunds in about 24 months, exceeds the total of N10.8 billion recorded between 1992 and April 2017, when the current Management took office” the statement read.

    Furthermore, the FMBN within the period funded the construction of 6,538 housing units across the country.

    Speaking on the development, the MD/CE FMBN, Arc. Ahmed M. Dangiwa stated that the results reflect the passion of Management to reposition the FMBN on the path of greater impact, responsiveness, and professionalism.

    In his words “the remarkable results that we have been able to achieve in about two years since we were appointed to run the affairs of the Bank. They demonstrate our determination to justify the confidence of President Muhammadu Buhari in our capacity to reform the FMBN as an effective tool in the hands of government to tackle the lingering housing deficit. The FMBN remains the best route to affordable homeownership for the Nigerian worker and we seek the support of all housing industry stakeholders in our bid to transform and reposition it to deliver on its mandate of providing affordable social housing”

  • FMBN okays N14m home renovation loan for Chellarams workers

    The Federal Mortgage Bank of Nigeria (FMBN) has given home renovation loans of N14 million to some Chellerams Plc workers in Lagos.

    Its Managing Director, Mr Ahmed Dangiwa, said the fund would empower the beneficiaries to put their homes in better condition, adding that the bank’s target was to ensure many Nigerians had suitable houses.

    The beneficiaries were given N1million each, which Dangiwa said was part of efforts by the bank to complement President Muhammadu Buhari’s housing reforms.

    Represented by FMBN Zonal Coordinator, Lagos, Mr  Abiodun Fashina, the MD said the bank will continue to keep its promise on home ownership to Nigerians.

    He said: “FMBN has a mandate to provide affordable mortgages to Nigerian workers, particularly low and medium income earners though the National Housing Fund scheme. The Fund is sourced from 2.5 per cent of the basic income of workers earning the minimum wage and who are 18 years and above.’’

    He said the fund’s objective is to provide cheap source of loans to nurture and sustain the mortgage industry and facilitate affordable homeownership for the low and medium income group.

    He explained that Section 14(2) of the NHF Act Cap N.45 of 1992 stipulates that a contributor to the NHF could access a loan from the fund to build, purchase or renovate  an house.

    According to him, to achieve this, FMBN has developed concessionary loan windows to enable Nigerians access mortgages for home ownership.

    He stated further that about N21.6 billion had, so far, been disbursed by the bank to 26,275 beneficiaries across the country under the Home Renovation Loan window.

    He identified lack of access to land, inadequate funding, inaccessibility of mortgage loans due to improper property titles, as some of the challenges facing the Fund.

    Others, he said, are low income of prospective borrowers, which affects affordability, cumbersome procedures for obtaining governor’s consent to land, which is also costly.

    Earlier, Chellerams Chief Executive Officer Mr Aditya Chellaram said the gesture was a demonstration of the firm’s concern for its staff welfare.

    The FMBN’s Lagos State Coordinator, Apapa office, Mrs Okoli Uche, urged the beneficiaries to ensure that the loans were used for what they were meant for.

    Uche advised Nigerians, who were yet to get their homes to key into the fund’s ‘Rent to Own’ housing programme, adding that it would enable them to access a house and pay for maximum of 15  years before becoming the owner

  • FMBN approves rent-to-own housing scheme for workers

    The Federal Mortgage Bank of Nigeria (FMBN) is to commence the implementation of a Rent-To-Own Housing Scheme.

    This follows the approval of the plan that will provide affordable houses for Nigeria workers, by the board of the organization.

    The FMBN Rent-to-Own scheme is an innovative, affordable housing product, which provides an easy and convenient payment plan towards home ownership for Nigerian workers, according to a statement by Spokesman of the organization Mr. Zubaida Umar.

    He said: “The scheme is specifically designed to make it possible for Nigerian workers to move into FMBN homes as tenants, pay for and own the properties through monthly or yearly rent payments spread over periods of up to 30-years.

    “It will also attract a single digit interest rate of nine per cent on the price of the property on an annuity basis. The product will cover properties with the maximum value of N15million.”

    The rent-to-own housing product targets Nigerian workers who are contributors to the National Housing Fund (NHF) and will be implemented in phases. About 3,000 houses are planned for the pilot phase.

    To deliver on the rent-to-own housing scheme, FMBN will partner with reputable estate developers for the construction of quality, cost-effective housing stock nationwide.

    Payments for the houses will be domiciled with the CBN through the Treasury Single Account (TSA).

    Properties that are planned for the rent-to-own scheme are Existing Estates that are funded by FMBN nationwide and non-funded estates.

    Managing Director/Chief Executive Officer of FMBN Dangiwa Ahmed said “the rent-to-own is yet another ground breaking initiative of the bank that is targeted at increasing access to affordable housing by Nigerian workers who fall into the low-medium income brackets.”

    “The rent-to-own housing product is designed to make sure that any worker who collects a salary should be able to live in his own home and pay conveniently over periods as long as 30-years! This is a massive relief especially given how little workers earn. I am delighted that we have successfully added this product to the many other initiatives that we have made possible to make home ownership a lot easier for Nigerian workers”.

    He added that the implementation of the scheme would eliminate the burden of equity contributions by workers for housing loans, complement the existing products of the bank by widening the home ownership bracket, increase housing stock, and help the bank to utilize abandoned estates that are to be transferred to the scheme.

    The CEO commended President Muhammadu Buhari for his commitment to the development of housing and the Minister of Power, Works and Housing, Mr. Babatunde Fashola  for his continued support for the ongoing reforms to re-position FMBN on the path of efficiency and impact.

  • Presidential panel to recover N87b bad debts for FMBN

    The Special Presidential Investigation Panel for the Recovery of Public Property said it plans to recover N87 billion bad debts owed the Federal Mortgage Bank of Nigeria (FMBN).

    The panel, in a statement yesterday, said its Chairman, Mr Okoi Obono-Obla, spoke when he visited the bank’s Managing Director, Mr Ahmed Dangiwa, in Abuja.

    Obono-Obla said the debts arose from loans obtained by estate developers and Primary Mortgage Institutions (PMI) between 2009 and 2016, according to the statement signed by spokesperson of the panel, Lucie-Ann Laha.

    He said preliminary investigations revealed that some of the loans were not used for the purpose for which they were obtained.

    According to him, the loans were not serviced due to the bank’s failure to “enforce due process and procedures”.

    Obono-Obla called on the FMBN management to cooperate with the panel by according it all the necessary assistance that would facilitate quick recovery of the debts.

    The recovery, he explained, would enhance the financial base of the bank and reposition it to better achieve its mandate of facilitating home ownership by Nigerians.

    Responding, Dangiwa lauded the panel’s efforts in furtherance of President Muhammadu Buhari’s anti-corruption campaign.

    He assured his guest of the bank’s co-operation in that regard adding that the FMBN was in full support of government’s anti-corruption war.

    He cited some programmes and policies adopted by the bank in line with this position.

  • Presidential panel to recover N87b bad debts for FMBN

    The Special Presidential Investigation Panel for the Recovery of Public Property has disclosed plans to recover N87 billion bad debts owed the Federal Mortgage Bank of Nigeria (FMBN).

    A statement issued on Wednesday by the panel’s spokesperson, Lucie-Ann Laha, said the Chairman, Mr. Okoi Obono-Obla, stated this when he visited the FMBN Managing Director, Mr. Ahmed Dangiwa, in Abuja.

    Obono-Obla said the debts arose from loans obtained by estate developers and primary mortgage institutions between 2009 and 2016.

    He said preliminary investigations revealed that some of the loans were not used for purpose for which they were obtained.

    According to him, the loans were not serviced due to the bank’s failure to “enforce due process and procedures.”

    Obono-Obla urged the FMBN management to cooperate with the panel by giving it all the necessary assistance to facilitate quick recovery of the debts.

     

  • FMBN’s 112 units for Lagos market

    THE 112-unit ministerial pilot Sedona housing scheme of the Federal Ministry of Power, Works, Housing will soon be inaugurated by Federal Mortgage Bank of Nigeria (FMBN) Managing Director, Mr. Ahmed Dangiwa, has said.

    He spoke at the estate site while leading the bank’s board members on the inspection tour of the project.

    The project, located in Igbogbo, Ikorodu, a Lagos suburb, is part of efforts aimed at addressing the housing deficit in the country.

    The project, known as the Sedona Estate, according to Dangiwa, is targeted at the low and medium income earners and financed by the apex mortgage bank.

    A breakdown of the Sedona Housing Estate showed that it is made up of 64 units of two bedroom flats and 48 units of one bedroom flats. Conceived in 2012 with the aim of increasing the housing stock, the project is being built by an Abuja-based firm, Sedona Business Consults.

    “This project is one of our projects that was abandoned for some time but now we have and are resuscitating them. It is a scheme that was conceived by the Ministry Power, Works, Housing in collaboration with Federal Mortgage Bank of Nigeria to increase the housing stock; it was conceived since 2012,” Dangiwa explained.

    He explained that the strategic plan for the estate, as well as others in the offing, are low and medium income earners, who are also contributors to the National Housing Fund (NHF) scheme.

    Dangiwa said affordability by those it was meant for was a major consideration for the project. This includes building houses that the off-takers will be able to afford with ease.

    “If you try to build an estate that the off-takers will not be able to afford, the estate will be abandoned and the purpose of the project will be defeated. People need to know what the Federal Government is doing about housing. This scheme was supposed to be completed earlier, but now, we have made sure it is completed and about to be put to use,” the FMBN chief said.

    He said the bank hopes to produce better housing designs, high quality buildings and efficient houses at very reasonable cost in the interest of the low and medium income earners.

    Dangiwa said the mortgage lender has created more than N80 billion worth of mortgages since its inception, with more than 20, 000 housing stock for the low and medium income earners.

    He said if estates, such as the Sedona Estate, are given to developers, they will be unaffordable by the low income earners because the cost of construction influences the price of buildings.

    “If developers get credit with up to 20 per cent interest and add that to the cost of development, the price of houses will definitely increase. But we got this land for free from the Ministry of Power, Works and Housing and funding is minimal, all these are in order to make it affordable to contributors of the National Housing Fund,” Dangiwa said.

    The National Housing Fund (NHF) is domiciled in the FMBN. The mortgage bank is responsible for its administration. As at last July, about 17,260 individual contributors have benefited from loans given under the NHF scheme since the scheme started in 1992, while about 20,435 housing units have been funded under the NHF scheme.

    NHF was established by the NHF Act No.3 of 1992 to mobilise funds for affordable residential houses for employed Nigerians who are over 18 for erecting, purchasing or renovating houses. It is also to provide long-term loans to mortgage institutions for lending to contributors, among other benefits.

    Basically, it focuses on those in the low and medium income levels who cannot afford commercial housing loans, in their quest to own their houses.

    The NHF is funded through a mandatory contribution of 2.5 per cent of monthly incomes of those earning N3, 000 and above; 10 per cent of loans and advances portfolio of commercial and merchant banks; and insurance firms are mandated to invest 20 per cent of their non-life and 40 per cent of life funds in the housing sector, with 50 per cent of these in the NHF; while the Federal Government is also to make financial contributions.

    Although the FMBN was recently recapitalised to the tune of N500 billion to reposition it to carry out its mandate under the Federal Government’s National Housing Programme, widen the country’s mortgage space and also deepen the housing finance market through mortgage creation, it is still a far cry from the N40 trillion the country needs in mortgage finance to address the present housing shortage.

  • $1.4b cash coming for FMBN

    The Federal Government plans to inject N500 billion ($1.4 billion) into its low-cost mortgage lender over the next five years in an effort to spur home ownership.

    Faced with a housing deficit of 17 million units, Nigeria is seeking to improve access to home loans in an economy that vies with South Africa as the continent’s biggest. A lack of proper land deeds, poverty and record high interest rates means there are only an estimated 50,000 registered mortgages, of which state-owned Federal Mortgage Bank of Nigeria (FMBN) accounts for 18,200, according to Chief Executive Officer Ahmed Musa Dangiwa.

    The lender is seeking to boost its capital from N5 billion at a rate of N100 billion  a year, he said in an interview on June 21 in the capital, Abuja. FMBN is expecting proposals on its recapitalisation, as well as a reorganisation of its business, to be approved by all arms of government by the end of 2018, Dangiwa said.

    The company’s current capital base is “grossly inadequate,” he said. “That’s why we’re in the process of ensuring that the capital base be increased.”

    Armed with the extra cash, the lender can go from the 2,500 new mortgages it plans to sign up this year to 100,000 over the next two years, Dangiwa said. The extra capital will also encourage other investors to provide additional funding, he said.