FMBN: Reducing Nigeria’s Housing Deficit Challenging But Achievable
•Seeks govt’s intervention on planned N500bn recapitalisation
Emmanuel Addeh in Abuja
The Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Osidi, has said that although closing the housing deficit in Nigeria remains a big challenge, but the feat was achievable.
Speaking in Abuja when he received the Secretary General of the International Union for Housing Finance (IUHF), Mr. Mark Weinrich, Osidi stated that it was common knowledge that Nigeria faces a significant housing deficit.
“Addressing this deficit has been a huge challenge, particularly for FMBN as the apex mortgage bank in the country and the managers of the National Housing Fund (NHF) scheme, a socio-security programme designed to pool long terms funds for affordable housing financing.
“Our mission therefore is to provide affordable and accessible mortgage financing for Nigerians, especially the low- and middle-income earners who form the backbone of our economy.
“In recognition of the enormity of the challenge faced by FMBN, the current executive management is embracing initiatives aimed at expanding our strategic partnerships to be able to deliver tangible results,” Osidi stated.
Osidi added that Nigeria was scaling up its efforts at deepening its business process automation and enhancing credit quality to check the negative impact on its books.
“We recognise that when our system substantially aligns with global standards and practices, it becomes easier to relate internationally and mobilise financial resources that our housing sector badly needs in form of Foreign Direct Investments (FDIs),” he added.
He stated that Nigeria has to address the supply side and at the same time look at the demand side of its housing challenge, so that it doesn’t end up building houses where there are no off-takers.
“And that is why I keep saying that in Nigeria we have a peculiar problem. We have houses we do not need and we need houses we do not have. Because we have a number of houses that are available which people cannot have them,” he emphasised.
He stressed that it was important for government to ramp up the recapitalisation of the FMBN, which might be a critical solution to the housing deficit.
“And for us, more particularly, it is about the recapitalisation of the bank. Because if the bank is recapitalised, we can leverage our capital to raise cheap funding to provide good consortium finance and mortgage finance. And that is why we have been engaging with government at the highest level to ensure that this bank is recapitalised, “ he disclosed.
Osidi explained that despite the challenges, the bank remains active in providing Nigerians affordable and accessible homes.
He noted that the bank now has a remarkable reduction in its expenditure while its revenue and income have been growing steadily, with the trend expected to continue with prudent management of its resources.
In his remarks, Weinrich said the mortgage bank empowers individuals, the unbanked Nigerians in particular, to save money and to get affordable housing loans.
“I believe if we have the right concept, we can make a real difference. You just have to adapt to the Nigerian environment. I’m not here to give you a blueprint which works everywhere, but you have so many innovations here already in the country. Africa is the future and not Europe,” he stated.
