FMBN needs N200 billion to bridge gap in housing deficit

By The Rainbow

The Federal Mortgage Bank of Nigeria (FMBN) requires a capital base of N200 billion for it to make a meaningful impact in redressing the country's housing deficit, Managing Director of the Bank, Mr Gimba Ya’u, has said.

The will translate to 4000 per cent rise on the capital base of the company which currently stands at N5 billion, out of which  the Federal Government has paid up its own share of N2.5 billion representing 50 per cent .

The two other shareholders – the Central Bank of Nigeria (CBN) and the National Social Insurance Trust Fund (NSITF) – have not paid up their 30 per cent and 20 per cent share respectively.

Ya’u Kumo spoke  in Abuja at a forum organised by the Nigeria Union of Journalists (NUJ).

According to him,  addressing the over 17 million housing deficit in the country will require aggressive injection of funds by the Federal Government.

Kumo said at present, the National Housing Fund (NHF) only has 3,772,031 contributors and it would require 50 contributors to contribute N500 monthly for 10 years before the bank would be able to provide a loan of N15 million for one individual.

Gimba, however, disclosed that so far, the bank has approved NHF loans of about N90 billion out of which only N39 billion or about 22 per cent has been disbursed. While it has also approved N110 billion Estate Development Loans (EDL) out of which only N62 billion or 52 per cent has been disbursed.

“The total disbursement we have made so far is N100.5 billion and we have been able to deliver 56,000 houses which is just a drop in the ocean when compared to the housing deficit we are confronted with.

“Since the NHF commenced, we have been able to collect a total of N106 billion and looking at our disbursements, we have disbursed more than that. This is because some of the funds we collected from contributors, we put them in investments” he said.

The union also demanded the payment of outstanding workers' 27 per cent since April 2012 in the next 21 days.