FG Approves Insurance Coverage For National Housing Fund

The federal government through the National Council on Housing and Lands has approved insurance coverage for National Housing Fund (NHF) contributions, managed by the Federal Mortgage Bank of Nigeria (FMBN). 

With the recommendation, the bank is expected to seek the support of Nigeria Deposit Insurance Corporation (NDIC) in protecting the contributors funds as done for depositors in commercial banks across the States. 

The Minister for Works and Housing, Babatunde Raji Fashola stated this in Abuja yesterday while declaring open the 2022 Board and Management Retreat of Federal Mortgage of Nigeria (FMBN) and official launch of its Corporate Statement.

The event was organised by the Federal Mortgage of Nigeria (FMBN) with the theme, “Strategic Repositioning for Optimised Performance”, and the sub-theme, “Organisational Culture Change and Informal Sector Integration.”

He said that one of the obstacles impeding affordable housing is access to finance,  which should be eradicated, just as he appealed to the bank to unearth policies that would ease the rental burden for its contributors. 

The minister added, “I know that the bank is issuing mortgages, home renovation loans and has started a Rent-to-Own initiative. What can the bank do for contributors. who need to pay two to three years rent in advance for monthly salary received in arrears?. 

In his address, the Managing Director/ Chief Executive of FMBN, Mr Madu Hamman said that since the approval of the bank’s 5-year strategic blueprint by the immediate past management in 2020, that the operating environment had witnessed significant challenges. 

He listed the challenges as the outbreak of COVID-19 pandemic, Russia-Saudi Arabia oil price war and Russia-Ukraine conflict, which introduced macroeconomic and social-economic fallouts at international and national spheres. 

Hamman said that Nigeria is battling with high inflation, driven by energy and food prices, local currency devaluation, insecurity and other changes in political activities ahead of the 2023 general elections. 

The managing director stated that despite the crisis, which impacted on its  operational and financial performance, that the bank envisages a financially viable and highly adaptive institution that is capable of coping with the vagrancies associated with the pandemic and other unfolding factors. 

Also, the President of Mortgage Banking Association of Nigeria (MBAN), Mr Ebilate Mac-Yoroki said that the 5-year strategic blueprint articulated by FMBN management demonstrated its commitment towards fostering housing finance in Nigeria, in view of the importance of housing mortgage to economic development as well as its multiplier effect on building materials. 

He was optimistic that the retreat would provide an opportunity to address long term issues, develop initiatives and intervention plans that could be implemented for the transformation of the housing sector. 

The President of Real Estate Development Association of Nigeria (REDAN), Mr Aliyu Wamakko pleaded with the federal government to hasten the recapitalisation of FMBN for optimum delivery of affordable housing to Nigerians. 

— Chika Okeke is a journalist with MOC and the Publisher/ Editor of Bennyokeke.blogspot.com, an online news platform.
She joined the services of LEADERSHIP Media Group in 2008 as a Reporter where she rose through the ranks as a Senior Reporter to Deputy Editor Daily, Deputy Editor, LEADERSHIP Sunday and Deputy Editor, LEADERSHIP Friday.
During her sojourn in LEADERSHIP Media Group, she had covered the activities of FCT Area Councils, Ministries of Tourism and National Orientation, Works & Housing and Environment.
With over one decade in journalism, she was able to explore various reporting and writing techniques such as feature writing, editing, investigation and editing, with over over 300 publications to her credit.
She has covered workshops and conferences, both in Nigeria and abroad.
She is currently the Treasurer, Environment Media Correspondents Association of Nigeria (EMCAN) and a member of Nigerian Union of Journalists (NUJ).