The Managing Director/Chief Executive Officer (MD/CEO) of Federal Mortgage Bank of Nigeria (FMBN) Arc. Ahmed. M. Dangiwa has called for improved partnership with the state government in its bid to support affordable housing provision across the nation.
Dangiwa made this call during his briefing to the Nigerian Governors Forum (NGF) on the activities, programs of the bank in Abuja recently.
The FMBN boss said the partnership is necessary to deepen the impact of its affordable housing delivery programs to a greater number of Nigerian workers within the low and medium-income bracket nationwide.
He said the partnership includes stronger support and participation of States in the National Housing Fund (NHF) Scheme, provision of unencumbered land for the execution of strategic FMBN affordable collaborative housing schemes as well as support for the elimination of high costs and systemic bottlenecks to title perfection and Governor’s consent to mortgage transactions at the state level amongst others.
Arc. Dangiwa stated that FMBN is strategically positioned to boost State Governments efforts to deliver affordable housing to their citizens in a sustainable and cost-effective manner through its wide portfolio of affordable housing products. ‘
This, according to him, includes National Housing Fund (NHF) housing loan of up to N15million payable over a 30-year period at best market interest rate of 6% per annum; and NHF individual construction loan at 9% interest rate per annum with a 15-year tenor.
“Other convenient housing loan products include rent-to-own scheme which allows beneficiaries to move into FMBN owned houses and pay back in monthly instalments over a 15-year period at single digit interest rates with no equity requirement and the home renovation loans where up to N1M is given to NHF contributors who already own their homes to carry out necessary improvements and pay back over five years,” he added.
The FMBN MD said the availability of zero equity contributions for housing loans below N5m and a maximum of 10% for loans from N5M to N15m is one of the unique packages of the bank.
The FMBN boss also said the partnership will enable State Governments to better take advantage of its strategic financing windows for real estate construction and decades old institutional experience in social housing provisioning.
Some of the affordable real estate financing windows that Arc. Dangiwa listed include Estate Development Loans and the Cooperative Housing Development Loans both available at best market rates of 10% interest rates and the Off-taker Guarantee Scheme at 0.5% interest rate per annum.
The FMBN MD/CEO, in soliciting the support and partnership of the State Governors informed them that the current executive management has set the FMBN on a new path of reform, innovation, accountability, efficiency and high performance.
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