THE Federal Mortgage Bank of Nigeria(FMBN) on Wednesday said it has so far disbursed a total sum of N15.7 billion to 19, 169 beneficiaries across the country under the Home Renovation Loan window.
Also, it said the sum of N1.8 billion was approved for 195 staff of the Federal Road Safety Corps( FRSC)as mortgage loans for the purchase of their own homes.
Managing Director (MD) of the bank, Arc. Ahmed Dangiwa made the disclosure in Abuja, at the presentation of N640 million cheques to 640 FRSC beneficiaries of the FMBN homes renovation loan.
He said this brings the total disbursement to the corps to N1.2 billion for 1,207 beneficiaries across the country.
According to the MD, the homes renovation loan window afford Nigerians who are contributors to the National Housing Fund, an opportunity to access mortgage loans to renovate or improve existing properties either personally or family owned.
He explained that unlike the regular mortgage, the process includes the signing of a Memorandum of Understanding(MoU) and execution of letters of an undertaking by the various State governments, collaborating agencies and employers for the deduction and remittance of loan payments to the bank.
While stressing its mandate, which is to provide a cheap source of loanable funds to facilitate affordable home ownership for the low and medium income group in the country, he said the bank developed concessionary loan windows to enable Nigerians access mortgages.
However, he noted that the realization of its mandate has continued to suffer setbacks due to lack of access to land, inadequate funding for the housing sector, low income of prospective borrowers which affects affordability, among others.
In consideration of these challenges, it became necessary for FMBN to develop some quick-wins that will allow a greater number of Nigerians access to the National Housing Fund. Consequently, the FMBN Home renovation loan was introduced by the bank.
While the bank continued to face considerable challenges particularly on its lack of adequate capital, all these indices indicate that we have performed creditably well in the discharge of our mandate given the lean resources at our disposal.
We have also given succour to Nigerians with the cancellation of equity requirement for NHF loans under 5 Million and a reduction in equity percentage payment to 10 per cent for loans from N5m to N15m from the initial 20 per cent to 30 per cent. This is bound to further boost the affordability of many Nigerians in accessing mortgages, he said.
In his remarks, the Corps Marshal, FRSC Dr Boboye Oyeyemi said the disbursement to FRSC A is the highest disbursement to any Ministry, Departments and Agencies(MDAs).
He said his tenure will ensure that all its staff amounting to over 30,000 owns a house assuring that beneficiaries will ensure repayment of accessed loans.
We have a workforce of over 30,000 and i told them that my joy is that by the time I finish my tenure, everybody will have a roof and it is going to be a one man one house and I am happy we are making progress in respect of this and the first thing I did was to proceed to FMBN because in our salary there is always a deduction of NHF and it is resident with the FMBN.
I want to express our deep appreciation to the management of the FMBN for having trust in us this is the highest disbursement to any MDA. When it comes to repayment we are more than willing to comply with the monthly remittance and this is why we are getting more, he said.