FMBN Disburses N782.6m To NHF Contributors

In continuation of its periodic disbursement of loans to the contributors of the National Housing Fund (NHF) Scheme, the Federal Mortgage Bank of Nigeria (FMBN) in the last quarter of 2011, specifically within the months of November and December, disbursed a total of N782, 626, 700.00 to 119 beneficiaries who are contributors to the scheme.

The disbursement, according to the apex mortgage bank, was aimed at enthroning accountability and transparency in the operations of the NHF Scheme.

Stakeholders and finance experts however, say that FMBN needs to do more in the operations of the scheme, which it midwives, explaining that many Nigerians who desire and deserve to own their own homes do not know what to do to access the NHF loan.

“Beyond opening an account with an NHF accredited Primary Mortgage Institution (PMI) through which I would be contributing to the scheme, I don’t know any other thing about how to access this loan even as a contributor”, John Igbe told our correspondent.

Igbe, who claimed to be a contributor having opened an account with a PMI for that purpose in 2004, said he wanted the FMBN to take up the challenge of putting life into the operations of the PMIs and ensure that contributors have access to the NHF loans.  He added that the bank needs to do a lot of sensitisation and create awareness through whichever means it deems fit so that people know what to do and how to do it.

Benneth Anekwe, also “a registered contributor” agrees stressing however, that the FMBN reform which seeks, among other things, to recapitalise it, is uncalled for, “because, if you ask me, I would tell you I don’t know what FMBN needs that fund for; I don’t know if it is going to disburse funds directly to the PMIs or the contributors.  I really don’t know what purpose the FMBN recapitalisation will serve. I would rather the PMIs are strengthened and made viable so that they can advance loans to those who need loans”.

NHF Scheme established in 1992 was aimed at giving housing loans to contributors at an interest rate as low as six per cent and for up to 25-30-year repayment tenor, but the operations of the scheme make access to its loans very cumbersome.

Through the ongoing reform aimed at repositioning the scheme and making it more contributor – friendly, minimal success has been achieved with its increased contributor-base and ICT based operations.  Part of the main problems of the scheme derived from the challenges faced by FMBN which supervises its operations, and according  to Gimba Kumo, the bank’s Managing Director and Chief Executive Officer, it is yet to realise its full potential.  This perhaps, explains the huge gap in housing demand and supply that has left the country with over 16 million housing units deficit.