Moves By Senate to Ensure Nigerians Access Mortgage Facilities Laudable

Olubunmi Omoogun writes about moves being made by the Senate to ensure Nigerians have access to mortgage facilities to enable them own housesState

In Nigeria, like every other country of the world, a home is a fundamental human need. That is why government has been spending money building  affordable’ housing, better known as low-cost homes to ensure that people in the country have a safe place to call home.

Minister of Works and Housing, Babatunde Raji Fashola and the Managing Director of Federal Housing Authority, Senator Gbenga Ashafa have been working to increase access to home ownership for low income earners through reduced housing cost & alternative financing options.

Today, the Federal Housing Authority has constructed 300,000 homes across Nigeria for low income earners while bringing together experience and expertise from multiple stakeholders to deliver a sustainable and impactful solution to housing in Nigeria.

One of the objectives of the Federal Housing Authority is also to create up to 1.8 million jobs in the construction value chain for Nigerians as well as increase domestic production of construction materials through economies of scale.

The pilot project of Federal Housing Authority which will be replicated across the country sits on 18 hectares of land, housing 764 units of various house types. The breakdown shows a total of 16 blocks of 3 Bedroom Flats in a block of 8 flats, 32 blocks of 2 Bedroom Flats in a block of 8 Flats, 14 blocks of 1 Bedroom Flats in a block of 16 Flats and 5 Blocks of Terrace duplexes in 4 rows.

To demonstrate the commitment of the National Assembly to bridge the housing deficit and facilitate the provision of more affordable housing facilities in Nigeria, the Senator representing Ogun West Senatorial District, Tolu Odebiyi sponsored a Bill for an act to establish the Chartered Institute of Mortgage Bankers and Brokers of Nigeria (CIMBBN) to add value to the housing sector and create greater opportunities for people to own their property in Nigeria, in line with the housing policies of the federal government of Nigeria.

The Bill is seeking to professionally arm mortgage bankers and brokers in the country with the appropriate legal and legislative instrument to function optimally

The sponsor of the Bill, Senator  Odebiyi said  “In a recent report by Price Water House Coopers (PwC), there is a present deficit of over 17 million houses in Nigeria. By this figure, experts have also warned that Nigeria will experience a 22 million housing deficit in the next nine to ten years time if nothing is done to address the increasing demand occasioned by the 2.55% continuous increase in population”.

The bill sponsor who is also the Acting Chairman, Senate Committee on Federal Capital Territory (FCT) further said, “The increase in housing demand calls for the need to urgently deploy all legitimate and legislative solutions to this menace, hence mortgage comes to mind in this regard”.

 “The Proposed Institute’s central curriculum would focus on the entire Mortgage Banking and Mortgage Brokerage Value Chain. It is imperative to note that the Mortgage Banking Association of Nigeria (MBAN) has been at the forefront of Mortgage lending activities in Nigeria since August 1992, i.e. 30years ago and therefore, a chartered status would formally authorize its existence, giving due recognition to its numerous advocacy initiatives towards the enhancement of mortgage affordability and financial inclusion in the Mortgage Banking Sub-Sector”.  

The Bill has the express support of the Mortgage Bankers Association of Nigeria (MBAN) and relevant Private and Public Institutions in the Financial Services Sector.

Foremost among them are the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) both of which provide regulatory oversight of All Mortgage Banks. Others include The Chartered Institute of Bankers of Nigeria (CIBN), the Securities and Exchange Commission (SEC), FITC, FSS 2020, The National Pension Commission (PENCOM), Federal Mortgage Bank of Nigeria (FMBN), Nigeria Mortgage Refinance Company Plc (NMRC), Mortgage Warehouse Funding Limited (MWFL), The Nigeria Exchange Commission (NGX) and Financial Market Dealers Quotations (FMDQ).   

While highlighting the fundamental functions and objectives of the bill, the Senator said it is also geared towards creating a platform which will produce qualified, dedicated, skilled and professionally trained individuals that will be involved in the management of mortgage lending as well as teach and lecture mortgage banking using international best practice(s) and well vetted curriculla.

-Omoogun writes from Abuja