Federal Mortgage Bank (FMB) to fund construction of houses in Nigeria at US$618.8m

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Federal Mortgage Bank of Nigeria has released US$618.8m for housing projects

The Federal Mortgage Bank of Nigeria is willing to fund construction in housing projects under the National Housing Fund.

The bank has already paid out a total sum of US$618.8m for the projects. A breakdown of the expenditure confirmed that the bank has approved the NHF loans of about US$554.2m, out of which only US$240m or rather about 22% has been disbursed, while US$677.3m has been approved under the Estate Development Loans.

The highest amount that can be accessed under the NHF has been amplified from US$30,788 to 92,363 of which the borrowed capital is repayable at a maximum of over 30 years at the rate of 6% interest. The document also showed that through the disbursements, the FMBN had been able to deliver 56,000 houses.

The Chief Executive Officer at FMBN Mr. Gimba Ya’u Kumo confirmed that the bank has collected a total of US$652.7m since commencement of the development for the NHF in Abuja. He urged the Federal Government to increase the share capital of the bank from its present US$30.8m to US$1.2bn to facilitate addressing the housing deficit in the country. Current statistics shows that the total number of houses delivered is between 46%-52% by the current management of the bank in the last two years.

The bank will also commence a Diaspora mortgage model to allow Nigerians residing in foreign countries to own houses in the country without impediment. The Nigeria Diaspora Loan Scheme will be developed in order to extend the delivery channels for the mass housing through the NHF scheme.

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