The Managing Director of Federal Mortgage Bank (FMBN), Arc. Ahmed Musa Dangiwa, has unveiled plans to collaborate with states governments for them to fix the infrastructural projects of the estates built by the FMBN in 10 states in order to reduce the entire cost as most of the estates still remain unoccupied due high cost.
He expressed concern during a meeting with 9-member delegation, led by the President of the National Economic Summit Group (NESG), Engr. Kashim Ali, at the FMBN headquarters, yesterday in Abuja.
Dangiwa said that despite efforts to construct the homes at cheaper rate in the sates, people cannot still access the mortgage adding that apart from partnering with the state governments on affordability, efforts are already being made to commence implementation of the rent-to-own initiative.
According to the MD, “Two bills are currently in the National Assembly (NASS) to improve operational activities of the bank as a foremost property finance institution adding that the bank remains the last resort for the common man to own a house.
In view of that, he said, FMBN will partner with the Nigerian Labour Congress (NLC) to design cheap homes to reduce housing cost to ensure affordability,” he said.
“In order to assist home owners, we realize that the factor of affordability mentioned has been a stumbling block. We currently have estates in more than 10 states that have not been occupied. They are being built at a cheaper rate. But despite that, people cannot access the mortgage. We are looking at two ways to address it. This housing development project for Nigerian workers, we are trying to encourage the state governments to do the infrastructure for us to reduce the housing cost.
“Second is the rent-to-own initiative. We have finished the paper work; it’s just to implement it. We are discussing with the state governments to key into it.”
Dangiwa called for support from the NESG to recapitalise the bank for better performance.
In his remarks, the NESG President said the Federal Government has the constitutional mandate to provide shelter for the people before proceeding to security and food. He blamed stakeholders in the sector for relying on the statistics of 17 million housing deficits rather than providing more reliable data to enable proper planning and development.
Ali advised the FMBN MD to help address issues relating to affordability, land title and foreclosure. He emphasized the need to include house developers in the annual National Council on Housing as well as financiers in order to factor their inputs while designing housing policies.
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