Following its mandate to boost the provision of affordable housing to Nigerian workers that are registered contributors to the National Housing Fund (NHF) scheme, the Federal Mortgage Bank of Nigeria (FMBN) has re-stated strong commitment to the speedy processing of qualified housing loan applications.
The bank has also appealed to its partner primary mortgage banks to key into the efforts to improve turnaround time for NHF mortgage loans by ensuring speedy treatment of applications and prompt forwarding to FMBN for approval and disbursement.
From 2017 to date, the board has been able to successfully process and disburse loans totaling N75.5billion. This includes 3,541 mortgages and 25,242 home renovation loans. We have also financed the construction of over 7,286 housing units within this period.
These figures represent a marked improvement in the performance of the scheme since it was established 27 years ago, according to the FMBN Managing Director, Ahmed Dangiwa, an architect. He stated this while assessing results of the bank’s strategic efforts to clear backlog of housing loan applications; tackle longstanding issues of delays in the treatment of loan applications and disbursement of funds by subscribers to the NHF scheme.
He explained that the pro-active efforts of the current management of the bank have led to a 45 per cent increase in FMBN’s speed of processing NHF housing loan applications and as a result the bank has been able to reduce substantially the huge backlog of loan applications that they met when they assumed office two years ago.
“I am pleased to note that we have recorded unprecedented improvement in the turnaround time of NHF loan applications. We have been able to bring this down to four months. This is a significant improvement. Of course, we are still not where we want to be, but at least we are now moving in the right direction and intend to do more”
“From day one, improving the turnaround time of housing loan applications has been the priority of our management because we understood quite early that it has been a big issue over the years, which has led to the accumulation of huge backlog. When we came on board, we set out clear strategies to reduce it. And we have made decent progress”
“Speaking specifically concerning the backlog of housing loan applications, the FMBN boss, Dangiwa said FMBN will continue to prioritize the 100 per cent clearing of all qualified housing loan applications that have gone through the various stages. He added that the bank is aware that though it has made significant progress in reducing the backlog and disbursing loans to beneficiaries, efforts would be sustained to ensure that everyone is attended to.
He however, added that the bank’s weak financial capitalization remains a major handicap to its ability to deliver on its social housing mandate of affordable housing. He therefore re-stated his call on the Federal Government to increase the Capitalization of the bank from the meagre N5billion – with only N2.56billion fully paid up – to N500billion as a necessary first step to strengthening the capacity of the bank to meet the housing demands of Nigerian workers.
According to him, a stronger capital base for the bank will put the institution in a better place to leverage more finance from the private sector, capital market and international development agencies for deployment towards the provision of affordable housing to Nigerian workers.
He applauded the support and recent calls from the National Assembly leadership, industry leaders and stakeholders for the government to empower the FMBN so it can play a stronger and wider role in tackling the spiraling housing deficit.
Source: guardianng
