FMBN: Marching Towards Affordable Housing Through Collaboration And Accountability

Under the watch of its new managing director, Arc Ahmed Musa Dangiwa, the Federal Mortgage Bank of Nigeria (FMBN) is on a steady match towards bridging the huge housing deficit in the country.

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The World Bank estimated that Nigeria has a housing deficit of about 17 million units. But at a time optimism is in short supply in virtually all sectors, the FMBN is giving contributors to the National Housing Fund reasons for hope. The new management is pulling off some remarkable feat particularly with its promotion of the following innovative reforms: Business Process Automation: The FMBN has embraced technologies aimed at achieving end-to-end business process automation within the institution. Its adoption of core banking application, wide area networking and mobile and internet solutions, will allow the Bank to seamlessly link with primary mortgage banks and interface with customers. Corporate Governance Framework: The Bank has engaged the Centre for Corporate Governance, which is affiliated to the Institute of Directors (IoD) to carry out Corporate Governance Audit and develop a Corporate Governance Framework and Governance structure in line with international best practices. Enterprise Risk Management Framework: The FMBN is presently implementing an Enterprise Risk Management Framework project undertaken by PricewaterhouseCoopers (PwC) Limited and which is due for completion by Q2 2018. Improvement In Loan Portfolio Performance: The institution has embarked on aggressive loan recovery that has, in turn, improved its loan portfolio performance.

By engaging debt collectors and working with the Nigeria Inter-Bank Settlement System (NIBSS) and PMBs, the Bank is automating loan repayment debits from customers’ bank accounts, which will reduce the rate of loan defaults. Advocacy For Legal/Regulatory Framework Reviews*: As part of its on-going reforms, the bank has worked with government and private institutions like the Central Bank of Nigeria (CBN), the Real Estate Developers Association of Nigeria (REDAN) and the Nigeria Mortgage Refinance Company (NMRC) on advocacy with State Governments to enact mortgage friendly (foreclosure) laws and improve land registry practices.

The Rendition Of Outstanding Financial Statements: To ensure accountability and regulatory compliance in FMBN, the new executive management team of the Bank has taken crucial steps to ensure the rendering of all outstanding financial statements by end of 2018. The new management of the FMBN has continued to ensure transparency in the NHF with SMS and email alerts now being introduced. Mr Dangiwa, in a newspaper interview, said: “Our vision is to reposition the bank as a foremost apex mortgage bank in the country and provide affordable housing financing for contributors to be achieved through improved and transparent operations. All of these are achievable with the cooperation and collaboration of stakeholders. This is our primary aim and focus”. NHF Refund: Documents obtained from the FMBN show that between April 2017 and January 2018, the new Executive Management Team of the Bank has refunded N5, 568, 252, 279.88 to 38, 255 contributors of the National Housing Scheme.

This indicates a 31.4 per cent increase in NHF refunds from a cumulative repayment of N17, 734, 599, 814.76 to a total of 190, 943 contributors since inception of the window in 2015. Also, the usually long period taken to process NHF Refunds has been shortened by the FMBN new management. NHF Mortgage Loans (NHFL): Figures obtained from the FMBN show that the Bank has equally disbursed N7.97 billion as NHF mortgage loans to 1, 019 beneficiaries between April 2017 and January 2018. FMBN Home Renovation Loan: Disbursements totalling N5.06 billion were made as home renovation loan to a total of 6, 718 beneficiaries under the aforesaid period. Our source further gathered that the FMBN, as of January 2018, has cleared backlogs of outstanding accounts up to 2014. The audited accounts are said to be pending approval of Central Bank of Nigeria (CBN) and the Honourable Minister of Power, Works and Housing. The 2015 audit exercise has equally been concluded and FMBN is awaiting the draft copy.


The 2016 and 2017 outstanding accounts will be concluded before the end of 2018. The FMBN, incorporated as the Federal Mortgage Bank of Nigeria in 1956, is the sole government institution saddled with the task of providing mortgage finance to Nigerians through the National Housing Fund (NHF). Previously known as the Nigerian Building Society, the FMBN is tasked with the provision of long-term facilities to mortgage institutions, mobilisation of both domestic and offshore funds into the housing sector, collection and administration of the National Housing Fund in the country in accordance with the provisions of the NHF Act. The FMBN has carefully designed the NHF to mobilise funds to provide the citizens with affordable residential houses through accredited Primary Mortgage Banks (PMBs) at six per cent which is the lowest rate in the country. Tasks Ahead Of The FMBN Even though the FMBN has faced a couple of operational challenges over the years, the institution has continued to ensure increased accountability in the management of the National Housing Fund. The FMBN has taken thoughtful steps to re-integrate defaulting states like Niger, Bauchi, Kebbi, Lagos, Kano, Ondo, Edo and Oyo into the NHF scheme in order to improve its performance indices. “We are currently reaching out to these states to see if we can bring them back on board to the NHF scheme…Mostly, we always tell them the advantages of joining the scheme because of the numerous products they can access and enjoy. – Olu wrote in from Abuja

Delta, TURECC Flag Off 1,000 Housing Units For Civil Servants

Asaba – Delta State Government, in partnership with TURECC, an international estate construction firm, has flagged off 1,000 Housing Units. This is part of the efforts of the state government to make the state civil servants and others have their houses.

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Mr. B O Omoniyi, the director and head of marketing, Delta Trust, who represented Delta State Government, said on Tuesday that since it was a right for everybody to have a house and not a privilege, it was also possible for everyone to possess the houses without stress.

While he explained that TURECC had a number of good products and vision, noting that housing was essential through investment and others, he encouraged everyone to patronise the bank, which is solely established by the Delta State Government for housing purposes, explaining that the bank had various facilities to finance any property project without hindrance to the beneficiaries.

Pastor Elvis Uto, TURECC’s director of operations, in his opening speech, averred that the firm was out to encourage everybody to invest in land property, be an investor and be able to leave something for the next generation.

According to him, there were opportunities in such packages like TURECC Own a House, TURECC Apartment, TURECC International Properties, TURECC Business, Garden City, Construction and others where would-be property owners could invest in and became property owners without stress.

He said what is important is to have a regular income, “identify the type of two or three bedroom executive desired and from your budget choose between the Toy House Executive, Toy House Delux and Toy House Standard available.”

Uto disclosed that whether the owner of the land had started construction or not, had approval or not, it does not matter but that what was important was for the intending house owner to register with TURECC, which would perfect the other documents to the Certificate of Occupancy, C Of O.

Obaseki Pegs Time for Building Approval at 48 Hours, CofO, 30 Days

By Adibe Emenyonu in Benin City

Edo State Governor, Mr. Godwin Obaseki, has charged the Ministry of Physical Planning and Urban Development to ensure a 48-hour turn-around time for approval of building plans in the state within the next two months.

Gov. Obaseki also directed the Edo Geographical Information Agency to ensure that Certificates of Occupancy (C of O) and Rights to Occupancy are issued to applicants within 30 days of application, demanding that this should take effect in the next 12 months.


He gave the directive while speaking at a two-day workshop organised by the Ministry of Physical Planning and Urban Development, themed: ‘Strengthening the Institutional Framework for Physical Development Management in Edo State,’ held in Benin City, the Edo State capital, recently.

Obaseki said the two-day workshop was organised to develop the expertise of stakeholders and strengthen the institutional framework for physical development and management. He said there was need to re-calibrate the management of the physical infrastructure to make room for well-coordinated urban development.

Noting that development had not been controlled for a long while in the state, he said, “This has contributed to raising a generation that lacks required knowledge on the importance of registering development plans. People need to be educated on the importance of registering their building plans. People just wake up and do what they like, and in the process turn cities into slums,” he said.

Obaseki added, “The focus of this administration is to re-enact and rebuild the physical development and space of the state. There is need to explore the use of legal frameworks to reposition the Urban and Rural landscape of the state. This will assist us in capturing the needs of the people in the state without compromising standards.”

He said his administration has developed well-thought-out plans hinged on six strategic pillars to include institutional reforms, environmental sustainability, culture and tourism, among others, adding that “the state intends to ensure sanity in urban development.”

Homeowners’ Charter: Amosun Explains Delay In Issuance Of C of O

Abeokuta – Ogun State Governor, Senator Ibikunle Amosun, has identified lack of proper documentation and incomplete payment by applicants under the Homeowners’ Charter Programme as factors responsible for the delay in issuance of Certificates of Occupancy.

Amosun stated this during the 29th edition of presentation of Certificates of Occupancy and Building Plan Approval to another batch of beneficiaries at the Arcade Ground, Oke-Mosan, Abeokuta.
The Governor, represented by the Commissioner for Commerce and Industry, Otunba Bimbo Ashiru, explained that though government allowed payment by installment, some applicants who had taken advantage of the opportunity have not done the needful by completing their payment and other documentation.

“The question asked by some applicants is why the delay in the issuance of C of O. But we found out that they have not done the needful. Some are yet to make full payment, though this government allows payment by installment.

“Others have not completed their documentation under the scheme. Let me assure you that all applicants that meet the requirements will collect their C of O before the end of our tenure,” Amosun said.
He said proper documentation would assist government in fast tracking the process of issuing land title documents and free the owners from land grabbers, forging or cloning their documents.


In his welcome address, the Director of Planning, Research and Statistics, Ministry of Urban and Physical Planning, TPL Bola Ajayi, said the programme would also help to provide enumeration data for medium town planning for the provision of schools, hospitals and other essential services to the people.

Taking Nigerian affordable housing narratives beyond borders

With over 170 million people, Nigeria, the most populous country in black Africa is plagued with housing problem.
This issue has been a thorn in the flesh of various governments as moves towards addressing the ugly phenomenon repeatedly failed.

In 1991 for example, the Nigeria housing deficit was seven million. It increased to 12 million in 2007, 14 million in 2010 and currently over 17million units.

To resolve the deficits, various governments through national development plans made frantic efforts in ensuring adequate mass housing, especially in urban areas. Like every administration before, the present Government’s effort is still fall short of meeting the nation’s housing expectations.

For instance, contrary to its promise in 2016 to build 5,000 housing units for workers in the public sector in the 36 states every year for the next three years, the government seem to have deviated from that direction as it announced last August, that it had commenced 2,736 new housing units in 33 states across the country.

In the same year, the government initiated Nigeria Housing Fund Programme (NHFP) under the Social Investment Fund of the Federal Government, in which N100 billion was set aside for its commencement. It is a scheme coordinated by the Central Bank of Nigeria to ensure access to housing finance by prospective homeowners.

The Federal Government has also earmarked N35.4 billion for housing in the 2018 budget for its workforce under the National Housing Programme.

It is pertinent to state that with the enormity of the nation’s housing problems, the 2018 budgetary allocation seems inadequate.

In view of this repulsive trend, the World Bank, in 2016, projected that it would cost the country about N59.5 trillion to address the housing deficits in the country.

About 108 million Nigerians are estimated to be homeless, based on an average family of six people per housing unit. The Bank projected that the country required about 700,000 housing units every year to curb this deficit.

With the prevailing situation, it is apparent that the real estate sector required aggressive private sector intervention.

One of the notable real estate companies to have made meaningful impact in the sector and also achieved giant stride in resolving the housing deficit in the country is Homework Development and Properties Limited.

The Lagos-based real estate company has not only shown its capacity to deliver affordable quality products, but has taken its success story outside the shores of the country.

The company also demonstrated that it could offer subscribers, within and outside the country, value for money through its affordable quality products, when it participated at the 2017 yearly conference of the Association of Nigerian Physicians in the Americas (ANPA) in Atlanta, Georgia, United States.

Through the event, the firm restored the trust foreign investors once had in Nigeria’s real estate sector and promoted the recent positive developments in the real estate industry.

ANPA members, who have benefited from the services of the company, specifically requested that Homework participate in the conference in order to expose the Nigerian success story to diaspora.

According to the Director of Homework Development and Properties Limited, Jide Adekola, an architect, the ANPA conference provided a platform to change the perception that foreign investors would not get value for money or might get scammed in Nigeria.

The event, he said, also created the awareness that there are professionals in the sector with the expertise to provide quality products in due time.

“The change in perception, which we have created, would in no small measure boost businesses and increase the volume of foreign direct investments that can engender increase in gross domestic product of the country, “Adekola said.

He added that Homework would also take part in the annual conference organised by the National Association of Nigerian Nurses in North America and other subdivisions within the United States.

It is also planning to hold similar exhibition and talks in Canada, the United Kingdom and other countries with large population of Nigerians

Homework had also ensured quality and affordability in its projects, which were showcased at the West Africa Property Investment (WAPI) summit last at Eko Hotel, Victoria Island, Lagos.

Responding to accolades from stakeholders and visitors to its stand at the summit, Adekola said the company’s projects were driven by passion to offer affordable quality homes to Nigerians.

“The company is driven by passion to create world class estates, which sets it apart in the industry. It delivers unmatched quality services to its clients through the provision of great architectural works in serene environments,” he said.

According to him, Homework intends to resolve the housing problem in the country through affordable mini estates of one, two and three-bedroom apartments with innovative architectural designs.

He said the company intended to deliver on the projects within a short period and that the affordable mini estates would be spread across the country. “There is a new demand for these apartments and there are people that need them for investment and related purposes since they are affordable.”

Also, a Director of Homework Development and Properties Limited, Chima Emerueh, said the company has made remarkable progress through its products located at Banana Island, where it has a small gated community of terraces and semi-detached duplexes.

He said the firm also plans to replicate its luxurious and quality products in other places like; Ajah, Yaba and other parts of the mainland.

Following the success recorded so far, Homework intends to explore opportunities in other West African countries with products within the reach of the people.

“Most people in Africa are looking for low cost houses and because we have done it in Lagos, we will do same in countries in the sub-region,” Emerueh assured.

FMBN to MBAN: Refrain from delaying disbursement to developers

The Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Arch. Ahmed Musa Dangiwa, has warned the Mortgage Bankers’ Association of Nigeria (MBAN) to stop delaying the disbursement of funds to developers.
Dangiwa, who gave the warning at a tripartite meeting between the Federal Mortgage Bank of Nigeria (FMBN), Mortgage Bankers’ Association of Nigeria (MBAN) and Real Estate Developers’ Association of Nigeria (REDAN) in Abuja recently, said disbursements should be made once such funds are received.

He further warned that it would not hesitate to sanctions aany mortgage banker that defaulters.
Dangiwa also urged members of MBAN to minimize the Turn Around Time (TAT) even as he charged REDAN to come up with affordable housing models and avoid unilateral changing of building designs, specifications and scope.
Non-availability of funds had been identified as some of the problems confronting the built environment in the country.
Similarly, experts and stakeholders have called for improved funding for the industry to tackle the huge housing deficit in the country, which had been estimated at 17 million.

Why housing estates in 10 states remain unoccupied
The Managing Director of Federal Mortgage Bank (FMBN), Arch. Ahmed Musa Dangiwa, has identified affordability as the major reason housing estates built by the bank in 10 states remained unoccupied.
Dangiwa said the development was affecting genuine housing programmes despite efforts to construct cheaper homes, many of them remained inaccessible.
He stated this recently at a meeting with 9-member the delegation led by the President of the National Economic Summit Group (NESG), Engr. Kashim Ali, to FMBN headquarters, in Abuja.
The MD stated that there are plans to partner with state governments to fix the infrastructural aspect of the projects in order to reduce the entire cost.

He also said efforts were ongoing to commence implementation of the rent-to-own initiative.
While noting that the bank is the last resort for the common man, he disclosed that the Bank will partner with the Nigerian Labour Congress (NLC) to design cheap homes, reduce housing cost to ensure affordability.
“In order to assist homeowners, we realize that that factor of affordability mentioned has been a stumbling block. We currently have estates in more than 10 states that have not been occupied.
“They are being built at a cheaper rate. But despite that, people cannot access the mortgage. We are looking at two ways to address it. This housing development project for Nigerian workers, we are trying to encourage the state governments to do the infrastructure for us to reduce the housing cost.
“Second is the rent-to-own initiative. We have finished the paper, it’s just to implement it. We are discussing with the state governments to key into it.”

In his remarks, the NESG President asserted that the federal government has the constitutional mandate to provide shelter for Nigerians before talking of security and food.
He blamed stakeholders in the sector for relying on the statistics of 17 million housing deficits rather than providing more reliable data to enable proper planning and development.
He also called for the inclusion of the real estate developers and financiers in the National housing council in order to assist in the development of designing housing policies.

Housing Loan Scheme Will Give Succour To Public Servants ―Dogara

THE Speaker of the House of Representatives, Honourable Yakubu Dogara on Tuesday stated that the Bill to amend the Federal Government Housing Loan Board to administer housing loan scheme to public sector workers would bring succour to public servants by bridging the housing deficit and increasing productivity in the public sector.

Dogara stated this in Abuja while declaring open a public hearing on the bill organised the House of Representatives Committee on Public Service Matters


The Speaker who was represented by the House Minority Whip, Hon Yakubu Bada explained that the amendment, when it scaled through, would make mortgage facilities more accessible to public servants at lower interest rates than the ones offered by commercial banks.

According to him, “this Bill has come at a right time to give succour to civil servants opportunity to have access to housing scheme for the purpose of owning a house. Research has shown that as at September 2016, the lowest recorded interest rate on any mortgage in Nigeria is 19 percent and requires 25 percent down payment.

“The question is how many civil servants can afford a mortgage under such harsh conditions? It is our objective that when this Bill becomes law, most civil servants will have access to a house of their own. I sincerely believe that this Bill will go a long way in bridging the housing deficit and increasing productivity in our public sector.”
The Speaker pointed out that it was on record that most public servants could not secure accommodation in Abuja due to high cost of rents, with majority of civil servants living in Nasarawa and Niger States and commuting to work in Abuja every day from long distances, thereby having an effect on productivity that was better imagined than experienced.

He recalled that during the 2017 Housing Summit organised in Abuja by Housing Circuit Magazine in partnership with other stakeholders, it was revealed that as at 1991, when the National Housing Policy was enacted, Nigeria had a housing deficit of seven million units but as at today, the housing deficit had grown alarmingly to seventeen 17 million and would continue to grow.

The Speaker, therefore, urged the stakeholders to proffer solutions on how to administer the Housing Scheme for Federal Public Officers in order to reduce and or eliminate the overall housing deficit in Nigeria.

In his remarks, the Chairman of the Committee, Hon Gogo Bright Tamuno disclosed that the amendment and the public hearing became necessary in order to expand the scope of the law so as to be able to accommodate those Agencies such as the Federal Road Safety Commission, FRSC and the Nigeria Security and Civil Defence Corps, NSCDC among others‎ that were not in existence at the inception of the law.

Lagos Declares 28-day Limit for Processing Building Approval Permit

Gboyega Akinsanmi

In a move to improve the state’s ease of doing business, the Lagos State Government has pegged the period within which building approval can be processed to 28 days, saying it has waved title documents as a condition for obtaining approval.

The state government has also issued a six-month notice to enable all property owners, who have built without approval regularise their approval documents, noting that it will not charge any penalty within the window of six months.

The Commissioner for Physical Planning and Urban Development, Mr. Rotimi Ogunleye, disclosed this at a stakeholders’ meeting he addressed at the weekend to sensitise the residents of Amuwo-Odofin Local Government Area, Lagos.

Ogunleye addressed the stakeholders’ meeting alongside the General Manager of the state Physical Planning Permit Authority (LASPPA), Mr. Funmi Osifuye, warning against erecting buildings without perfecting approval documents.

At the meeting, Ogunleye lamented that many residents of the state had not been obtaining approval before erecting their buildings, a practice that violated the state Urban and Regional Planning and Development Law, 2010.

Citing implication for public safety, the commissioner disclosed that the process of obtaining building approval “has been made easy. Any person with intention to erect structures within the state will secure building approval within 28 days.

“Between March 1 and August 31, we will not charge any penalty for those who had erected their structures without a building permit. We purposely created that six months grace period for landowners to obtain their building permit.”


Also speaking at the meeting, the general manager explained reasons for the six-month grace to enable property owners perfect their approval documents, noting that the opportunity was “to assist property owners protect themselves.”

Within the six-month window, Osifuye said property owners could approach the government with land receipt and obtain the required government permit, noting that the state government was determined to encourage residents seek building approval before erecting their structures in any part of the state.

He added that the state government “has waved registered title as condition for obtaining building approval. The law stipulated that before anyone could erect a structure, such a person must obtain development permit. The government now accepts family receipt as condition to erect structures across the state.”

Ogunleye also lamented proliferation of oil tank farms in the state, noting that the state government would probe their operations due to implication for public safety and failing to comply with environmental impact assessment guidelines.


He said the state government’s decision to embark on the investigation was “to protect residents from fire disasters that might emanate from the tank farms during explosions.”
He explained the decision of the state government to investigate tank farm operation, noting that it “has already embarked on the study. And soon, we will come up with a very comprehensive approach to get everything under control in Lagos.”

He said the ongoing investigation “will address the apprehension often expressed on tank farms in the state. The proliferation of filling stations has made residents express worry over it considering the inflammability of petroleum products.”

ASO Savings denies $250m equity capital

The Management of ASO Savings & Loans Plc is aware of the recent news in the print and electronic media suggesting that Milost Global Inc is set to inject $250M equity capital into ASO Savings & Loans Plc.

“We dismiss this claim and wish to state that ASO had at no time issued any notice to Nigerian Stock Exchange (NSE) as purported in the media. ASO Savings & Loans Plc has not entered into any agreement with Milost Global Inc. Members of the public are implored to disregard the false news that has pervaded the media,” the statement said.

“Any change to ASO’s business structure or operations will be duly communicated by the Bank through the appropriate channels. ASO will continue to strive to be the Mortgage Bank of choice and explore innovative ways to meet the housing needs in Nigeria.”


Mortgage bankers coerce governors on Foreclosure Law

In a bid to deepen mortgage penetration and promote home ownership among citizens, the Mortgage Bankers’ Association of Nigeria (MBAN) is mounting pressure on state governors to adopt its Model Mortgage and Foreclosure Law in their localities. Speaking with New Telegraph in Lagos, MBAN President, Mr. Adeniyi Akinlusi, said the establishment of the law has become necessary in order to entrench mortgage finance in the country.

He said the association had been engaging state governments and exploiting the Governors’ Forum on the establishment of mortgage and Foreclosure Law in order to make use of home ownership as a bridge for financial inclusion and insurance penetration to boost states’ internally generated revenue (IGR).

He lauded Kaduna State government for being the first to pass MBAN’s Model Mortgage and Foreclosure Law, adding that this step has propelled the state to access $250 million facility from the World Bank in support of its efforts in trying to loosen the economy.

This step, he said, would make Kaduna State’s economy liquid, guarantee attraction of capital and ensure that citizens, especially residents of Kaduna, have access to loans to buy houses. On benefits inherent in establishing a Foreclosure Law by states, Akinlusi said: “What it does is that in terms of timing and in terms of cost, it is faster for people to perfect their title. It is also cheaper in terms of cost.

“These are things that affect mortgage rates and risk premium; it also affects the meeting time for conclusion of transactions.” Besides, Akinlusi said that passage of Mortgage and Foreclosure bill into law by state governments would have positive effects on ease of doing business. He said: “What Kaduna State government has done is call the Model Mortgage and Foreclosure Law. It is being recommended for all the state governments as well. They should take a cue from it.

“On the back of this giant steps being taken by Kaduna State government, we are engaging with other states, we are even engaging the Governors’ Forum to see how we can use home ownership as a bridge for financial inclusion, for insurance penetration, for increasing even the IGR because we know that in most of these states, what they have in common is huge informal sector.”

The MBAN boss explained that the informal sector contained 65 per cent of Nigeria’s Gross Domestic Product (GDP), adding that major concern was how to move these people into mortgage finance. Akinlusi said: “We are looking at how we can move them in because, for each house you finance, you create at least 70 jobs, 35 directly and 35 indirectly.

“This is also a big way towards reducing unemployment rate, which stands at 20 to 40 per cent.” Housing experts have identified complications in enforcing mortgage contracts and foreclosure on properties in Nigerian courts as one of the serious impediments to adequate housing delivery in Nigeria.

Other major drawbacks include limited access to housing and mortgage financing, slow bureaucratic procedures in land administration and high cost of land registration, difficulties in delivering affordable housing to low and middle income households wherein lies the greatest demand for housing, high rate of population growth, high rate of rural-urban migration and exorbitant cost of construction materials.

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