FMBN Records Over 17,000 Beneficiaries of Housing Loans in 2022
Not fewer than 17,886 workers have benefitted from the National Housing Fund (NHF) in 2022, says the Federal Mortgage Bank of Nigeria (FMBN).
Investors King understands that the NHF Scheme was established by the Federal Government to enable Nigerian workers with low or medium income access loans to build or buy houses for residential purposes.
FMBN stated that funds were given to assist active workers who are contributors in the NHF Scheme to build or renovate their existing houses.
Investors King reports that complaints over the years on the scheme showed that the FMBN has not not been fulfilling its core purpose of furnishing workers with modern and affordable houses.
The Group Head of Corporate Communications, Timan Elayo averred that several workers have benefitted from the housing loans with a low-interest rate and long repayment period of up to 30 years.
Elayo gave the breakdown of the various programmes beneficiaries; “948 subscribers got access to the NHF mortgage loan which allows the contributor to purchase a house through a licensed mortgage loan originator at the maximum loan amount of N15 million, at an interest rate of six per cent and the repayment period of up to 30 years.
“1,034 contributors under the rent-to-own arrangement got an FMBN-funded house as a tenant until rental he/she pays qualifies for ownership of the house with a maximum purchase price of N15 million and interest rate is seven per cent of the price of the property on an annuity basis for 30 years.
“Also, 15,836 contributors got home renovation loans, a product that affords Nigerians an opportunity to access mortgage loans for the renovation or improvement of existing homes. While only 68 subscribers got access to the NHF individual construction loan.”
The FMBN Boss noted that the mortgage bank is making plans to diversify its income to get more funds to satisfy more workers.
He mentioned that the bank is planning to implement a five-year strategic blueprint to improve its funds, get long-term capital to fund its programmes and boost the recapitalisation agenda of the bank.
Osinbajo Lauds China on Loans Offered to Africans, Repayment System
Nigeria’s Vice President, Prof. Yemi Osinbajo has commended the Chinese government for the loans given to African countries and its repayment system.
According to Osinbajo, the Chinese loans have reduced the reliance of Africans on international financial institutions like the World Bank, and International Monetary Fund amongst others.
He stated these at King’s College, London on March 27, 2023 while delivering a public lecture on ‘China’s Investment in Africa, Investors King reports.
The Vice President lauded China for constantly meeting the needs of African countries which has reduced the burden on the western institutions.
He further mentioned that the loan servicing system was made easy to aid the African economies, especially during the Covid-19 Pandemic in 2020.
Through its Debt Service Suspension Initiative (DSSI), China offered 73 low income economies suspension of principal and interest payments.
“Chinese banks provided 63% of the total debt relief while being only owed 30% of the debt service payments due,” Osinbajo noted.
The VP pointed out that China is the largest provider of foreign direct investment which provides jobs for hundreds of thousands of Africans.
On Chinese investment in Africa, Osinbajo stated that $254 billion was disbursed in 2021 which was calculated as four times the volume of US-Africa trade.
“China remains by far the largest lender to African countries. Chinese companies have also taken the lead in exploiting minerals in Africa, many now in lithium mining in Mali, Ghana, Nigeria, DRC, Zimbabwe and Namibia. Most African countries are rightly unapologetic about their close ties with China. China shows up where and when the west will not or are reluctant.
“And many African countries are of the view that the ‘beware of the Chinese Trojan loans’ advice from the west is wise but probably self serving. Africa needs the loans and the infrastructure. And China offers them.”
“All of Chinese lending to Africa is only 5% of all outstanding public and publicly guaranteed debt in low and middle income countries, compared to 23% held by the World Bank and other multilaterals. Chinese lenders account for 12 per cent of Africa’s private and public external debt,” the vice president stated.
First Bank Denies Forgery Allegation in Face of Legal Battle with Loan Defaulter
First Bank of Nigeria Limited has issued a denial against the forgery allegation made by Francis Chukwumah Nwufor, the owner of Whiteplains British School.
In the lawsuit marked CR/266/2023, the federal ministry of justice had accused the bank of forging a “tripartite legal mortgage without the consent of Mr Francis Chukwumah Nwufor, with intent to commit fraud.”
In an official statement, First Bank described the accusation as a spurious allegation made by a delinquent debtor, which is aimed at tainting the bank’s loan recovery efforts and legal enforcement of its security collateral interest in line with the terms of the loan.
The bank emphasized that it operates by the highest standards of ethical conduct and will under no circumstances involve itself in any act of illegality. It further assured its numerous customers, stakeholders, and the general public that it remains focused on its mission of providing the best financial services.
The case has been adjourned until May 8th, as the prosecution lawyer stated that all the defendants had yet to be served with the charge.
It is common for loan defaulters to resort to legal battles with banks and this case is no different. However, it is important for both parties to ensure that the matter is handled in a transparent and legal manner.
First Bank’s denial of the allegation is a clear indication that it is standing firm against any attempt by recalcitrant debtors to fritter away depositors’ funds under its custody. The bank’s focus on its mission of providing the best financial services to its numerous customers is commendable and should be the guiding principle for all financial institutions.
CBN Disagrees With IMF’s Poor Rating of Anchor Borrowers’ Programme, Says Over 50% Loan Repaid
The Central Bank of Nigeria (CBN) has reacted to the recent poor rating of the International Monetary Fund (IMF) on the Anchor Borrowers’ Programme, faulting its claim.
The CBN stated that as of February 2023, 52.39 percent of the loan which amounts to N503bn has been repaid by the beneficiaries of the programme. This contradicts the IMF’s statement.
Investors King had earlier reported that the International Monetary Fund said only 24 percent of loans offered to farmers under the Anchor Borrowers’ Programme of the CBN have been repaid.
The IMF mentioned that the repayment process is very low and the programme structure weak as CBN allows the farmers to pay in cash or in kind.
The international body further alleged that the beneficiaries were not carefully selected as some used the funds for other purposes instead of agriculture.
In a statement by the Acting Director, Corporate Communications Department, AbdulMumin Isa, on Monday, the apex bank stated that out of the N1.079 trillion disbursed for the programme, N960 billion was due for repayment.
Isa further said that about 4.45 million smallholder farmers had been beneficiaries of the ABP for planting 21 different crops on 6.02 million hectares.
He said, according to the Food and Agriculture Organisation, the ABP has immensely aided the national output of focal commodities, with maize and rice peaking at 12.2 million metric tonnes in 2021 and 9.0 million metric tonnes in 2022.
“It is pertinent to note that the tenor of loans under the ABP is based on the commodity gestation period. For instance, loans granted to farmers cultivating some perennial crops could have up to seven-year tenor.
“The Central Bank of Nigeria remains committed to its developmental mandate of stimulating access to finance for the real sector, particularly agriculture, as it continues to support the Federal Government’s drive for food security and economic growth. Accordingly, the Central Bank of Nigeria continues to welcome applications from eligible Nigerian farmers and firms under the Anchor Borrowers’ Programme,” the acting Spokesperson stated.
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