Recapitalise FMBN to guarantee affordable housing — Experts

Speaking on the issue, the immediate past president of the Real Estate Developers Association of Nigeria, Aliyu Wammako noted that FMBN have good inititatives of mortgage products in Nigeria but have liquidity constraints which may thwart its mission to massively guarantee affordable housing in the country. He said the rent to own and non interest […]

Speaking on the issue, the immediate past president of the Real Estate Developers Association of Nigeria, Aliyu Wammako noted that FMBN have good inititatives of mortgage products in Nigeria but have liquidity constraints which may thwart its mission to massively guarantee affordable housing in the country.

He said the rent to own and non interest loans are very good mortgage initiatives which will go a long way in tackling shelter concerns in the country

He however, noted that the current capitalisation of the Bank is too small to create the necessary impact.

His words: “The FMBN has been in existence in the last 30 years and it’s current capitalisation still remains N2.5 billion which is what it uses to pay salaries, overhead and other operational demands without any subvention from the government.

“Nothing is given to them except the 2.5 per cent NHF contributions from nigerian workers which is very low and not enough to do anything,” he noted

He further stated that for low and middle income earners, the FMBN must be recapitalised to from N2.5 billion to atleast N500 billion so that the Bank will have enough liquidity to provide these mortgage financing to the populace if not the Bank will always be constraint.

Also speaking, the Executive Director of the Housing Development Advocacy Network Barr. Festus Adebayo said one of the products like the Rent to own Assistance is a very popular mortgage plan which has been in existence even in the United Kingdom to help middle and low income earners in the country

“The product creates an opportunity for an individual to rent a house and eventually own it which reduces the stress of years of saving before buying a property

“Also Banks like Jaiz and Taj have been championing non interest loans in the country so these financial institutions can partner with the FMBN in ensuring that these products are impactful to the public, “He however called on the government to also ensure adequate financing at the disposal of the Bank to be able to improve mortgage financing in the country as Nigerians are yearning for affordable housing.