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Monday, 18th January, 2021
 Nigeria   ::   News
Fedral Mortgage Bank disburses N265bn housing fund
Nov 12, 2020
Source: CEOAfrica News: Reported by-Blessing Osajie

The Federal Mortgage Bank on Wednesday announced that it had so far disbursed N265bn to subscribers under the National Housing Fund.

 The Managing Director of FMBN, Ahmed Dangiwa, made it known during the 2020 Housing Summit in Abuja that subscribers to the fund had increased to 5.1 million, as 570,000 new contributors had been added to the NHF scheme.

He said the cumulative disbursement of N265bn represented an increase of about N112bn or 74 per cent over the N152.5bn which the current management met in 2017 and within the last three years, about 8,700 new homes had been added, a growth of 43 per cent, to attain a cumulative 29,133 funded housing units.

He noted that within the three-year period, NHF collections grew by N186bn, representing 80 per cent, to reach a cumulative amount of N418bn as of September 2020.

On the home renovation micro-loan, Dangiwa said the bank had been able to grow this by over 2,000 per cent from about 2,600 to 56,000 loans in the last three years.

In terms of subscriber base, the FMBN boss explained that about 570,000 contributors had been added to attain a contributor base of over 5.1 million NHF subscribers.

Dangiwa told participants at the summit that 34 out of the 36 states of the federation were compliant regarding workers’ contributions with five states resuming contributions within the past three years.

He said, “The NHF scheme, established by Act 3 of 1992 was created to serve as a pool of long-term funds for housing delivery, funded by 2.5 per cent of workers’ monthly income and mandatory investments of percentages of the business portfolios of banks and insurance companies.

“Over the years, the loan products under the NHF scheme have been expanded to cater for the various needs of its contributors.

“Presently, the NHF provides fixed interest mortgages for home acquisition, an individual construction loan to aid self-development, a micro-loan for home renovation and rent-to-own.”

Dangiwa also said FMBN planned a review of the NHF Act to ensure mandatory investments by banks and insurance companies.

In another development, the bank stated that it would deliver 5,000 housing units from its Mini-City Housing Development Programme under the National Economic Sustainability Plan of the Federal Government within 12 months.

Dangiwa disclosed this in a statement issued in Abuja on Wednesday by the Head, Corporate Communications Group, FMBN, Lawal Isa.

He said the 5,000 housing units were in addition to the delivery of about 2,500 units under the labour projects, as the bank had delivered 1,400 units under the Nigerian Workers Affordable Housing Development Programme.

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