MON, June 25 2018-theG&BJournal-The Federal Government say it will invest up to N500 billion over the next the five years into Nigeria’s low-cost mortgage lender, the Federal Mortgage Bank of Nigeria (FMBN) to help it accelerate home ownership in the country.
According to the World Bank, Nigeria lags in housing and will require over 17 million housing units to bridge the gap. In MARCH 2018, the Federal Minster of Power, Works and Housing, Babatunde Fashola inaugurated a new governing board for both the Federal Housing Authority (FHA) and FMBN.
The new board was inaugurated following direct order by president Muhammadu Buhari when it became obvious the low-cost lender was flailing in its objective of ensuring the implementation of policies of government, with respect to public housing and mortgage financing in Nigeria.
The cash injection will also boost the capital of the struggling lender over the next five years. In 1994, the NHF was under the mandate to deliver about 121,000 housing units but less than 5% of that has been achieved.
The 1991 housing policy sought for active participation of all tiers of government, the federal, state and local government and also government agencies and parastatals such as the federal housing Authority, the state housing Authority, Ministries and Departments.
FMBN will in August flag off a 1,500 housing project it is providing funding for under a new ”rent’to-own” programme. The Chief Executive officer of FMBN, Ahmed Musa Dangiwa say the new project will help create more mortgage and access to housing.
