Federal Mortgage Bank of Nigeria (FMBN) has offered a housing loan of N2 billion to the Oyo State Government under the National Housing Fund (NHF) scheme.

Mr. Gimba Ya’u Kumo, managing director/chief executive officer of FMBN, disclosed this in Ibadan, Oyo State capital, when the management of the bank paid the governor a courtesy visit yesterday.

The bank’s team led by the Chairman of the board of directors, Alhaji Deda Atta, used the opportunity to congratulate the State Governor, Senator Abiola Ajimobi, on his election victory at the governorship polls held on April 14, 2011.

Atta said that the expectations of the people of Oyo State were high, that the governor will do well and noted that he is confident that the governor will not fail them, going by his antecedents in the private sector of Nigeria’s economy.

Kumo noted that Ibadan is one of the biggest cities in Africa and because of its housing deficit, the housing situation in the state requires drastic attention, which is why the “Federal Mortgage Bank of Nigeria is offering the Oyo State Government a N2 billion facility to construct housing estates in the state”.

He envisaged that the loan facility can finance the state government’s proposed Ajoda Housing Estate in partnership with Coop Building Society Limited, or any other estate developer of the State Government’s choice.

The FMBN managing director explained that the National Housing Fund (NHF) is a mandatory savings scheme for Nigerian workers from which they can access mortgage loans at low interest rates to build, buy or renovate residential houses in any part of the country.

He added that under the NHF scheme, the FMBN has registered 60,659 NHF contributors in Oyo State and these contributors have made a total of N536 million contribution to the scheme. Kumo said the Bank has refunded N31.5 million to the state contributors who have retired from service.

The bank has also invested a total of N730 million in Oyo State through an Estate Development Loan of N400 million for construction of 216 housing units by a private estate developer, Tola Tos Nigeria Limited, and mortgage loans of N330 million to Coop Building Society Limited (as housing loans to 217 contributors under the NHF scheme). It is indeed on record that Coop “The second stage should be a stage of taking decision and making a choice, knowing about the issues, product.

“Having known about all of them, we might come to the conclusion we want to consume all aspects of non interest banking or part of them,’’ he said.

Nwankwo, however, said decisions should be taken considering the environmental factors in the country, adding that government’s action must focus on the technical realities of the economy.

The realities, he said, involved political considerations and experience concerning the various reforms in banking and financing over the past 20 years.

“The realities of experience include the banking sector, community banking, micro finance banking and indeed the realities of what is currently happening in the banking sector, repositioning, restructuring of the banking sector.

“All these and the realities of what has happened in the capital market in recent days in Nigeria and the implications on the volatilities in the banking sector are also to be noted.

“These are the entire contest that will help us having known what non- interest banking is and to take a decision of the way forward,’’ he said.

Nwankwo said all these considerations must be analysed before moving to the implementation stage, adding that following these processes would enhance effective implementation of the initiative.

“ We should be open minded about moving forward and the easiest way is for all us to commit to ourselves that there is nothing wrong in having full knowledge of  this type of funding,’’ he  said.