FMBN Moves to Recover Delinquent Loans Nationwide, Sets Up Seven Task Teams

•CEO says action necessary for bank’s survival

Emmanuel Addeh in Abuja

In a bid to recover its delinquent and non-performing loans, the Federal Mortgage Bank of Nigeria (FMBN), yesterday set up seven specialised loan recovery task teams to retrieve all the bank’s debts nationwide.

Speaking at the event, the Managing Director of FMBN, Shehu Osidi, who inaugurated the teams at the Abuja headquarters of the bank, stated that the action was critical to sustain the core mandate of making mortgage available to Nigerians.

Osidi stated that the step had become important so as to safeguard the financial interests of the bank and ensure the sustainability of its lending operations, stressing that that over the years, the bank had played a crucial role in providing affordable housing finance to Nigerians.

According to him, this has helped in contributing significantly to the achievement of the national housing agenda and promotion of home ownership in the country.

Osidi stated that to ensure effective implementation, the teams were segmented along geo-political zones and each team would handle all delinquent loans within its jurisdiction.

While the first team covering the Federal Capital Territory (FCT), is led by Dr Kabir  Yagboyaju, who chairs the group, Mr Jibo Ibrahim Chairman will lead the North-West, while TLG Elayo will chair the task team for the North-Central and Mr Gbenga Babade, will lead the South-West task team.

Others included: Ms Oby Nwokedi, chairperson, South-East ,Mr Nafada Ibrahim, Chairman, North-East and Ms Felicia Aningo, chairperson South-South.

Osidi said: “Speed is of essence because each team has only 10 weeks to complete this assignment and deliver results. That is two weeks for desk review and eight weeks for the assignment.

“However, the sustainability of these efforts hinges on our ability to recover loans effectively and reinvest them in future projects; unfortunately, the bank has performed poorly in this regard.

“Loan recovery is a critical component of our financial management strategy. This is to ensure that funds are available for disbursement to new beneficiaries while maintaining the integrity of our lending operations.

“Despite the successes we have recorded in our home delivery efforts, we must acknowledge the enormous challenges we face with our Non-Performing Loans (NPLs).

“While some of NPLs  are due to infractions from external parties and factors, a huge chunk of blame also  lies with us as internal stakeholders hand-in-hand with glaring administrative and operational inefficiencies.’’

The FMBN CEO said that going forward, FMBN staff would be held accountable for the outcome of credit decisions over which they have played critical roles.

 Osidi pointed out that the strategy adopted by FMBN in the loan recovery endeavour was to follow a different path by challenging itself to deliver tangible results in pursuance and defence of its common destiny.

“The inauguration of these teams marks a significant milestone in our ongoing efforts to enhance the financial stability and operational efficiency of the bank,’’ he explained.

He stressed that the mandate of the task teams included: To conduct desk review of assigned loan portfolios, including the history of loans, houses on ground, state of collaterals, outstanding balances and personalities behind the loans.

He added that the team would look at the segmentation of the loans and the chances of recovery, develop an overreaching recovery strategy, engage relevant stakeholders as well as use both conventional and informal but acceptable strategies to carry out the recoveries.

In cases where the teams resorts to security agencies or the court, such actions, he said, should not be taken made without the executive management’s approval.

Osidi said the team would be required to render regular updates and progress reports to the executive management, monitor and track the progress of debt recovery efforts.

According to him, they will also implement measures to prevent NPLs including the development of risk mitigation strategies and enhancement of credit assessment process among others.

Executive Director, Business Development and Portfolio Management, FMBN, Ms Chinenye Anosike, who congratulated the members of the task team, urged them to take the loan recovery task seriously.

Also, the Executive Director, Loans and Mortgage Services, FMBN, Mr Muhammed Abdul, said that the task was to recover loans given to the teams to help reinvent the growth, development and future of  the bank.

He assured the FMBN’s management of the team’s commitment to work in synergy and deliver on the task ahead.