On Monday, the Federal Government said that it was working to boost the mortgages offered to donors under the National Housing Fund by a total of N712 billion in order to finance about 100,000 housing units across the nation.
This was announced at the Federal Mortgage Bank of Nigeria’s first Board and Management Retreat in Abuja, and it was added that efforts were being made to provide one million affordable homes for Nigerians as part of the National Housing Programme.
Ayodeji Gbeleyi, the chairman of FMBN’s board of directors, announced that the bank’s board had adopted a strategy plan that would boost the number of mortgages offered for Nigerians to build homes.
He said, “In line with the mandate of the Federal Government to expand the housing sector in general and deepen the mortgage sub-sector in particular, the bank’s board approved a five-year strategy plan covering the period 2020-2024 with focus on certain key performance indicators.
“The KPIs include growing the National Housing Fund contributions from N49bn in 2018 to N285bn per annum, increase contributors from about 4.8 million in 2018 to 31.6 million in 2024, to finance a cumulative of 100,000 housing units and grow mortgages to N712bn in 2024.”
He stated that among the strategies being encouraged to reach the goals of the five-year strategy plan were increasing and diversifying the funding mix, increasing and broadening mortgage penetration, and making homeownership more accessible.
According to Gbeleyi, the Federal Government launched the National Housing Programme with the goal of building millions of dwellings around Nigeria in order to address the housing shortage.
“The NDP sets specific targets for the period 2021-2025 to improve access to affordable housing by delivering homes to Nigerians with a baseline of 500,000 per year and ultimately 1,000,000 per year, 20 per cent of which would be by the public sector,” he stated.
The head of FMBN, however, pointed out that despite the advancements, the real estate sub-sector was still severely constrained by the high cost of construction supplies, difficulties obtaining land, and difficulties in obtaining mortgage financing.
“And by implication, the operations and performance of the FMBN,” Gbeleyi stated.
At the retreat, FMBN’s corporate statement was formally introduced by Babatunde Fashola, Minister of Works and Housing, who also disclosed that the bank would contact the Nigeria Deposit Insurance Corporation to insure the monies of its contributors.
He said, “In and consistent with our current thinking, the National Council on Housing and Lands has adopted the recommendation for the bank to seek NDIC’s insurance of its contributors’ funds just as is done for depositors in other banks.”
“These are some of the actions and events of strategy repositioning, intended to deliver optimised performance.”