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Housing deficit: FMBN boss woos FG for N200b capital base

By on August 14, 2013

Managing Director of Federal Mortgage Bank of Nigeria, Gimba Ya’u Kumo, on Monday in Abuja put total disbursement made so far to contributors at N100.5 billion, just as it has delivered 56, 000 houses.

He urged the Federal Government to increase the bank’s share capital from its present N5 to N200 billion, to enable it address the housing deficit in the country, admitting that the number of houses delivered “is just a dropping the ocean when compared to the housing deficit we are confronted with.”

Giving a breakdown, he said 46 to 52 per cent of the houses delivered 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.

Kumo said addressing the over 17 million housing deficit in the country would require aggressive injection of funds by the Federal Government.

Of the bank’s present share capital, government has paid its own share of N2.5 billion, representing 50 percent, while 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.

Kumo said at present, the National Housing Fund (NHF) only has 3,772,031 contributors and it would require 50 contributors to contribute N500 monthly for 10 years before the bank would be able to provide a loan of N15 million for one individual.

He however said so far, the bank has approved NHF loans of about N90 billion, N39 billion or 22 per cent of which has been disbursed. It has approved N110 billion ‘Estate Development Loans’ (EDL), with only N62 billion or 52 per cent disbursed.

He also revealed that in partnership with some trade unions, the bank has been able to bring down the housing deficit for registered workers in the country to four million, while efforts are being made to clear the deficit within the next eight years.

While commending state governments that are already part of the scheme, he also urged them to provide infrastructures so that the houses the bank is building in their states would not be too expensive for Nigerians.

“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.

 

 

 

{Daily Independent]