FMBN, FHA to Sign MoU on Housing Delivery

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Dele Ogbodo in Abuja

As part of efforts towards solving the 17 million housing deficit, the Federal Mortgage Bank of Nigeria (FMBN) and the Federal Housing Authority (FHA) have concluded arrangements to sign a Memorandum of Understanding (MoU), to deliver a million housing set by President Muhammadu Buhari.

The charge came following directive to both establishments by the Minister of Power, Works and Housing, Mr. Babatunde Fashola that the two housing establishments should expedite action on the delivery of affordable housing for Nigerians.

THISDAY gathered, that this is part of the resolution reached at a working visit by FMBN and FHA as part of efforts by government to tackle the over 17 million housing gap across the country.

In a statement signed by FMBN’s Group Head, Corporate Communication, Mrs. Zubaida Umar, which was made available to THISDAY over the week end in Abuja, said the Managing Director of FHA, Prof. Mohammed Al-Amin noted that both agencies have a long history as a result of the complementary roles they play in the housing delivery chain.

FMBN and FHA, the statement added agreed to jointly explore opportunities for housing delivery through a number of on-going housing schemes such as the Accelerated Housing Scheme for selected Ministries Departments and Agencies (MDAs), and the Federal Integrated Staff Housing (FISH) Scheme for federal civil servants amongst others.

To add verve to this commitment, both institutions agreed to sign an MOU as a mark of partnership in the joint effort to meet the annual target of delivering 1 million housing units which was set by President Muhammadu Buhari towards ameliorating housing challenges in Nigeria.

He pointed out instances where FMBN granted the FHA an Estate Development Loan (EDLs) to construct over 250 housing units at the Obada-Oko Estate in Ogun State and NHF mortgage facilities granted its subsidiary, FHA Mortgage Bank Ltd., for the funding of mortgage loans at concessionary interest rates.

FMBN’s Acting Managing Director/Chief Executive, Mr. Richard Esin identified the funding of mortgages for affordable housing for the Nigerian mass market segment as a key business focus of the bank.

To create the required synergy, FMBN is to provide funding for housing development on land banks held by FHA nationwide. He expressed optimism that the collaboration between FMBN and FHA provides the best synergy for delivering housing for the mass market segment of contributors to the National Housing Fund (NHF) Scheme.
Both institutions also agreed to jointly explore opportunities for housing delivery through a number of on-going housing schemes such as the Accelerated Housing Scheme for selected federal MDAs, the Federal Integrated Staff Housing (FISH) Scheme for federal civil servants amongst others.

Umar said: “To add verve to this commitment, both institutions agreed to sign an MOU as a mark of partnership in the joint effort to meet the annual target of delivering a million housing units which was set by President Muhammadu Buhari towards ameliorating housing challenges in Nigeria.

It added that FMBN is established to provide liquidity to the Nigerian mortgage sector and affordable housing to the low and medium income segment. “It collects and manages contributions to the National Housing Fund (NHF) whose resources are deployed for the financing of mass housing construction and mortgage financing on concessionary terms,” Umar said.