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Published On: Thu, May 8th, 2014

Housing: FMBN to deliver 4000 units by 2014 end

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Stories by Etuka Sunday

The Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Alh. Gimba Ya’ u Kumo yesterday disclosed that the bank was ready to deliver 4000 units of housing at the end of the year 2014.

Kumo further informed that the bank collected a total sum of N134.1 billion as National Housing Fund (NHF) since its initiation in 1992.

The MD who spoke at a Magazine Leadership Forum organised by the Nigerian Newsworld and Nigerian Pilot Newspapers, added that the bank had so far collected the sum of N82.1 billion since December 2010.

According to Kumo, the Bank’s monthly collection has increased from the previous N730 million to N2.2 billion and N2.5 billion respectively.

Kumo who said that the bank has the mandate to link the mortgage finance market with the capital market and develop a viable secondary mortgage market in Nigeria said, about N57.2 billion was recorded in 41 months as mortgage loans.

He stressed the importance of the fund especially to state governments but however, disclosed that about six states are yet to key into the mortgage scheme.

The FMBN Boss said that before December, 2010, between 22 and 24 states were contributing to the NHF, but the bank had increased the number to 31, with FCT inclusive.

He said that efforts were being intensified through the introduction of Nigerians in Diaspora Housing Scheme to ensure that they acquire their dreams houses without falling into the hands of their relatives who often trick them of their monies.

According to him, the Federal Government approved N5 billion as the capital base in 2003-2004, adding that the current capital base stood at N2.5 billion.

He said that the bank would need N250 billion capital base to operate to capacity.

He said that the total refund of NHF before 2010 was less than N1 billion, adding that it was, however, recently been raised to N2.7 billion.

He listed some of the challenges confronting the bank as: Lack of compliance with NHF Act by banks, insurance companies; poor capitalisation, weak mortgage institutions; land use Act of 1975; infrastructure.

On quality of houses, he said the substandard houses were being founded by private developers and not by FMBN as being speculated, adding that a committee has been set up to monitor the quality specification of houses in Nigeria.

Also speaking, the Publisher of the Newsworld and the Nigerian Pilot, Mr Dennis Sami, said the forum was put together to highlight some of the achievements of President Goodluck Jonathan’s Transformation Agenda in the housing sector.


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