The minister of works and housing, Babatunde Raji Fashola, has claimed that the Federal Mortgage Bank of Nigeria (FMBN), under President Muhammadu Buhari’s administration, had made positive contributions to the growth of the housing sector in Nigeria by providing laudable services.
Fashola made this known in Abuja recently.
According to the him, the equity contribution ratio for certain types of loans has been reduced.
”Since the inception of the Muhammadu Buhari administration in 2015, FMBN has a positive story of service delivery to tell with the number of mortgages that have been issued, housing schemes that have been funded and completed and changes that have been made to the eligibility conditions to improve access to funding”, he said.
Fashola challenged the bank to do more, noting that the federal government has instilled in the board and management a sense of how to reposition itself for greater and optimal performance in serving members of the public, particularly those who contribute to the National Housing Fund.
He revealed that the federal government has assisted the FMBN in acquiring core banking applications and software that reflect the reality of the current banking environment, allowing them to operate comfortably like any ideal bank.
He disclosed that the National Council on Housing and Land, which met last week in Sokoto, recommended that the bank seek NDIC insurance for its contributors’ fund, just as it does for depositors in other banks.
Although the minister expressed appreciation for services such as mortgage lending, home improvement loans, and the implementation of the Rent-to-Own Initiative, he charged them with devising other ways to alleviate people’s concerns, particularly the problem of landlords demanding two to three years’ rent in advance from tenants.
He observed that the problem of housing deficit is frequently viewed from the perspective of ownership, despite the fact that no country in the world has 100% housing ownership, adding that it is a balance of ownership and rental.