Nigeria: FMBN to Remove Equity Payment in Estates
In its determination to guarantee affordable housing to Nigerian workers, the Federal Mortgage Bank of Nigeria (FMBN) has vowed to remove equity payments in its completed estates across 10 states that would be used as a pilot project for soon to be launched rent-to-own scheme.
The managing director of FMBN, Ahmed Musa Dangiwa, an architect, stated this in Abuja while receiving eight-man delegation from the Nigeria Institute of Management (NIM) led by its president, Prof. Olakunle Iyanda.
According to him, “They (beneficiaries) will enter into the house as a tenant, while paying the rent and it will become theirs over the years”.
He noted that the bank has continued to sponsor it’s staff to NIM professional development programmes yearly and would continue with the trend in order to enrich the bank human resources.
The MD revealed that the bank was established by an act to provide affordable mortgages that would boost home ownership among Nigerian workers particularly the low and medium income earners that constituted over 80 percent of the population.
“Its been done through the National Housing Fund (NHF) scheme into which workers mostly in public and private sector contribute 2.5 percent of their monthly income into the fund”.
Dangiwa emphasised that the bank has continued to provide affordable mortgages to workers and construction finance to some developers for housing development through the scheme.
He was optimistic that the NHF which he described as individual mortgage loans are granted at 6 percent interest rate, considered as the lowest and most affordable in the country.
“We have the FMBN home renovation loan with liberalised conditions for easy access by workers which is being run now of which workers are given a minimum of N1million to renovate or upgrade their homes”.
The MD urged NIM members to take advantage of the banks mortgage products so as to act as good ambassadors of FMBN.
He was hopeful that the institute would continue to uphold the standards for which it has been known over the year even as he assured of FMBN commitment towards the sustanance of mutually beneficial realtionship between the two organisations.
Responding, the president of NIM, Prof. Olakunle Iyanda said that the institute is ready to contribute its quota towards enhancing the success story of the bank through the training programme offered to FMBN staff.
He however invited FMBN to join NIM as a corporate member just as he appealed to the bank to pay the annual subscription of its staff who are members of NIM.
“We want to establish the mutually beneficial relationship to participate in the training of your staff periodically either as nominees to various training programmes that we run or as facilitator for your internal programmes for selected group of staff in the bank”, he concluded.