NAN-H-67
Recapitalisation
By Ella Anokam
Abuja, Dec. 13, 2017 (NAN) Some stakeholders in the housing sector have called for the recapitalisation of the Federal Mortgage Bank of Nigeria (FMBN) with N1 trillion to enable it deliver affordable housing to Nigerians.
They made the call on Wednesday in Abuja, at a public hearing organised by the House of Representatives Committee on Housing, at the National Assembly.
The hearing was on “A Bill for an Act to Repeal the FMBN Act, Cap. F16 Laws of the Federation of Nigeria, 2004 to make comprehensive provisions for the Re-establishment of the FMBN and its Board of Directors and Related Matters ( HB.911).’’
The Vice President of League of Civil Societies Groups, Mr Bashil Mohammed said for the 17 million housing deficit to be bridged, the bank should be recapitalised with one trillion naira.
“The Federal Government should be the sole shareholder of FMBN and should increase its capital base to at least one trillion naira for serious housing provisions.
“We are also concerned with section 10: 8 of the FMBN Act which stipulates that FMBN is working in an agency capacity. We are against the proposed National Housing Trust Fund and will like the session to address the issue.’’
Mr Bala Kaoje, the Vice President, Real Estate Association of Nigeria (REDAN), also endorsed the recapitalisation of FMBN with one trillion naira for effective mortgage finance in the country.
Advocating for a special intervention, Kaoje said that the housing sector especially the undercapitalised bank had been neglected in the industry for a long time.
Prof. Mohammed El-Ameen, the Managing Director, Federal Housing Authority said that the bank capital base should be increased to at least N500 billion.
El-Ameen said the increase in liquidity would position the bank to deliver on its mandate.
The expert said that there had been several moves to increase the liquidity but factors militating against it were within the government system.
He decried counterproductive agencies, especially the Ministry of Finance and Nigeria Mortgage Re-financing Commission (NMRC) which renders the same function being done by the bank.
“This Bill should try as much as possible to address unnecessary intervention of the Ministry of Finance as well as the lackadaisical attitude of Central Bank of Nigeria (CBN) toward mortgage finance”.
He described the collaboration between the FHA and FMBN as inexplicit, and called for synergy between the two organisations to be created in the bill.
In his memorandum, Mr Samson Eluwa, Vice Chairman, Council for Registered Builders of Nigeria (CORBON), endorsed the share capital rights of the bank from N5 billion to N500 billion.
He noted that the bill should evolve a mechanism to enable low income earners to access mortgages from the bank.
“Our recommendations are that FMBN board members should be made up of professionals and stakeholders in the built environment as well as finance experts who can direct and supervise policies’’. (NAN)
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Edited by Ese E. Ekama