The Federal Mortgage Bank of Nigeria has disclosed that contribution to the National Housing Fund, which is meant to provide mortgage loans for home ownership in the country, is now worth N134bn.
The bank also said it would need a capital base of not less than N250bn to tackle the housing problem confronting the country.
The Managing Director, FMBN, Alhaji Gimba Kumo, stated this in an interview with journalists in Abuja on Wednesday.
He said that the bank had collected N134bn since the inception of the NHF in 1992.
Kumo added that paucity of funds had hindered the efforts of the FMBN to provide affordable housing for Nigerians.
He, however, stated that the bank’s management was liaising with mortgage institutions both within and outside the country, as part of efforts to solve the housing problem facing Nigerians.
Kumo said that the FMBN was not only involved in driving foreign investments in the housing sector, but was also taking advantage of the private sector-driven affordable mass housing strategy of the Federal Government.
He stated, “We have to do this because the sector is grossly underfunded. As things stand today, if the FMBN is to effectively discharge its responsibilities, it requires a capital base of N250bn and it has nothing close to that.
“But we are glad that reputable companies in the sector like the Industrial and Commercial Bank of China, China Export and Credit Insurance Corporation, Shelter Afrique and Globus Financial Services of the United States of America are prepared to partner with us.”
According to him, the NHF’s monthly collection stands between N2.2bn and N2.5bn.
He said that efforts were being made to improve on it by convincing more state governments to contribute to the funds.
Kumo said that the management of the bank had succeeded in convincing many states to adopt the NHF scheme.
He noted that before December 2010, about 24 states were contributing to the NHF, adding that the bank had been able to increase the number of contributing states to 31, including the Federal Capital Territory.
Kumo urged the Federal Government to provide infrastructure, adding that banks would not provide infrastructure for estate developers after giving them loans.
