Emmanuel Addeh
The Mortgage Banking Association of Nigeria (MBAN) has set a N1 trillion yearly turnover target for the new management of the Federal Mortgage Bank of Nigeria (FMBN).
The mortgage bankers insisted that the target, which could be achieved by taking advantage of the opportunities in the capital market will aid in growing the financial capacity of the sector.
In addition, the group stated that it would help the bank and the entire housing sector realise set goals more easily and reduce the liquidity issues in the sector.
Speaking during a visit to the new Managing-Director of the FMBN, Mr. Madu Hamman, and his team in Abuja, President of MBAN, Mr. Ebilate Mac-Yoroki, called for a review of the laws guiding operations of the mortgage banking sector in Nigeria.
He also expressed the need for the FMBN to automate the operations of the bank and pleaded that primary mortgage banks are allowed fair opportunities to operate.
According to Mac-Yoroki, when FMBN decides to take advantage of the opportunities he said abound in the mortgage sector in the capital market, there would be enough funding to meet the several commitments it has on ground, including payment of dividends.
He requested that the bank should give some latitude to other primary banking institutions operating along with it in the sector, including clearing the ambiguities surrounding the ‘single obligor’ policy, allowing them take advantage of the rent-to-own package, as well as giving preference to private mortgage banks to hold mortgage funds that commercial banks currently hold.
“I’m a product of the capital market. I want to plead that the FMBN utilises all the opportunities we have in the capital market and we have also given you a target because you don’t just come as big men to work without target.
“Government will not give you target, but because we are private sector people, we are saying that from now on, your operational target should be in N1 trillion turnover every year.
“It means that this year since we’re already in June, we can accommodate N500 million turnover. That way we know that you will have a lot of money, you can pay dividend and so on.
“We also want to plead that you give optimum opportunities for all PMBs to operate, as many as possible, without compromising standards. If anybody has not committed any crime, maybe he has one or two regulatory issues to address, please try and help them so that we can have enough,” he said.
