The federal government plans to increase the mortgage fund for housing

The Federal Government has said it is working to increase the mortgages provided to contributors under the National Housing Fund (NHF) to the tune of N712 billion to finance around 100,000 homes across the country. country.

He revealed this during the inaugural Federal Mortgage Bank of Nigeria (FMBN) Board and Management Retreat in Abuja, adding that efforts were underway to provide one million affordable homes for Nigerians in the National Housing Program (NHP).

FMBN Chairman Ayodeji Gbeleyi said the bank’s board had approved a strategic plan that would increase the amount of mortgage loans to be provided for building houses for Nigerians.

He said: “In line with the federal government’s mandate to broaden the housing sector in general and deepen the mortgage sub-sector in particular, the bank’s board of directors has approved a five-year strategic plan covering the period 2020. -2024 with a focus on certain key performance indicators.

“KPIs include increasing National Housing Fund contributions from 49 billion naira in 2018 to 285 billion naira annually, increasing contributors from around 4.8 million in 2018 to 31.6 million in 2024 , to fund a total of 100,000 homes and increase mortgage lending to N712 billion in 2024.”

He said that some of the measures being promoted to achieve the goals of the five-year strategic plan included deepening the penetration of mortgage loans by facilitating access to property, increasing and diversifying the financing mix through diversification funding sources, among others.

Gbeleyi said that in order to address the housing deficit in Nigeria, the Federal Government had launched the National Housing Programme, adding that the aim of the NHP was to provide millions of homes across the country.

“The NPD sets specific targets for the period 2021-2025 to improve access to affordable housing by delivering housing to Nigerians with a baseline of 500,000 per year and eventually 1,000,000 per year, of which 20 % would be by the public sector,” he said. declared.

The head of the FMBN however noted that despite the progress made, the high cost of construction materials and the difficulties of access to land and mortgage financing had remained major constraints in the real estate sub-sector.

“And by implication FMBN operations and performance,” Gbeleyi said.

Minister of Works and Housing, Babatunde Fashola, who officially unveiled FMBN’s corporate statement at the retreat, disclosed that the bank would approach the Nigeria Deposit Insurance Corporation to insure its contributors’ funds.

He said: “In line with our current thinking, the National Housing and Lands Board has adopted the recommendation that the bank seek NDIC insurance for its contributors’ funds, just as it is done for depositors in other banks. »

“These are some of the actions and events of the strategy repositioning, intended to deliver optimized performance.”