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FMBN recovers N5.4b debt, set for recapitalisation

In less than two years, the Federal Mortgage Bank of Nigeria (FMBN) has recovered N5.4billion bad loans from debtors. The loans – N2.4billion and N3billion were recovered in 2017 and 2018 respectively.
FMBN Managing Director, Ahmed Dangiwa, an architect revealed that the bank used the services of recovery agents, who also restructure some debtors loans while recalcitrant’s ones have been reported to the security agencies for necessary action.

Dangiwa who spoke during the bank’s 2018 management retreat in Kano on the theme: “Improved Transaction Turnaround Time: Getting it Done”, said the management renewed strategies to revive bad loans is slowing down the bank’s investment and largely obstructing policy implementation targeted at financing affordable housing scheme for Nigerians.

While lauding the working relationship between FMBN and Special Presidential Investigation Panel for Recovery of Public Property, Dangiwa said explained that interim report received from the panel indicated that estimated N43billion bad loans would be recovered in the next 18 months.

He also revealed that after 12 years of failed attempts at institutional restructuring, the management’s proactive stakeholder engagement drive has resulted in the successful passage of key amendments to the Laws establishing the Institution and the National Housing Fund (NHF) by both chambers of the National Assembly.

The amended laws, when assented to by the President, would birth a new, more independent and financially stronger FMBN with a robust capital base of N500 billion. The additional liquidity and operational flexibility will greatly enhance FMBN’s capacity to more effectively deliver on its mandate to provide access to affordable mortgage finance for home ownership by Nigerian workers.

He reported that the bank was strengthening its collaboration with its key stakeholders, especially the labour unions, whose members constitute the bulk of contributors to the National Housing Fund Scheme.

This has culminated in the commencement of a need-targeted housing delivery program across the country – the National Affordable Housing Delivery Programme (NAHDEP) for Nigerian workers, in collaboration with the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC) and the Nigeria Employers’ Consultative Association (NECA).

His words: “Groundbreaking ceremonies have been done and construction work has commenced in earnest in five states, spread across the six geopolitical zones of the country. Others are in the pipeline as we intend to cover every State across the country. Part of the central focus is to establish a template for affordable housing delivery in Nigeria.

“Accordingly, the implementation concept is unique with the housing designs and bill of quantities (BoQ) directly commissioned by the bank to ensure the profit motive is greatly minimized. This template has given us the leverage to guarantee that the selling prices for the housing units range between N3.1million and N8.3million for one, two and three bedroom flats.”

Meanwhile, Kano State Government is poised to collaborate with the FMBN to address housing deficit in the state.

Kano state Deputy Governor, Dr. Nasiru Yusuf Gawuna stated this when he received the bank’s management team to his office.

He said the state government is committed to ensuring that people in the State, especially the civil servants avail themselves of the housing contributory scheme.

He noted that over 2,000 low cost housing units constructed by the state government for civil servants and other low-income earners to reduce housing deficit.

Originally published in The Guardian

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