NIGERIA: FMBN disburses 43% of approved NHF loans

Federal Mortgage Bank of Nigeria (FMBN) has so far disbursed N39 billion out of about N90 billion that has been approved, representing just over 43 percent; while out of the N110 billion approves as estate development loan (EDL), only N62 billion representing about 53 percent have been disbursed.
Managing Director, FMBN, Mr. Gimba Ya’u Kumo, who disclosed this in Abuja, lamented the low capital base of the bank which is currently N5 billion, out of which only 50 percent or N2.5 billion being the Federal Government’s share has been paid up. He noted that the other shareholders, namely the Central Bank of Nigeria (CBN) and the National Social Insurance Trust Fund ( NSITF) have not paid up their 30 percent and 20 percent share respectively.
Ya’u Kumo noted that the National Housing Fund (NHF) presently only has 3,772,031 contributors, adding that it would require 50 contributors to contribute N500 monthly for 10 years before the bank can be able to provide a loan of N15 million for one individual. He called on the Federal Government to increase the bank’s share capital from its present N5 billion to N200 billion, to enable it address the housing deficit in the country. He asserted that the over 17 million housing deficit in the country would require aggressive injection of funds by the government.
According to him, the total number of houses delivered through NHF scheme is just 56,000 units, conceding that the number “is just a drop in the ocean when compared to the housing deficit we are confronted with in the country.” He however claimed that 46 to 52 per cent of the houses delivered so far were done by the current management of FMBN within the last two years, while a further N1.6 billion representing 1.58 per cent of total collections was refunded to retirees.
The FMBN boss also noted that the bank in partnership with some trade unions has been able to bring down the housing deficit for registered workers in the country to 4 million, while efforts are being made to clear the deficit within the next eight years. He commended state governments that are already part of the scheme, but urged them to provide infrastructure to help reduce the cost of housing delivery. “We also appeal to those states that are not yet in the scheme, about eight of them, to do so to enable Nigerians in those places to begin to derive the benefits of NHF and own their homes” he said.

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