- FMBN Posts N2.7 Billion Operating Surplus for 2016
The Federal Mortgage Bank of Nigeria (FMBN) has posted operating surplus of N2.7 billion for the year ended December 31, 2016, marking the Bank’s return to profitability for the first time in over two decades.
This was one of a number of highlights at the Bank’s 2016 Business Performance Review Session, in Abuja.Although details were not given, but the return to profitability came as a surprise, especially in the view of the current recession and weakening purchasing power, which have created a lull in the mortgage sector. The fortunes turnaround implies increased subscription to the government’s plan for homes for all scheme for its workers, and that more beneficiaries of loans are repaying, and possibly accompanied with more prudent management of resources by the bank’s management.
Meanwhile, about N9 billion was approved by the Minister of Power, Works and Housing, Babatunde Raji Fashola, for the creation of 1,244 mortgage loans across the country, under the National Housing Fund (NHF) Scheme in 2016.
The Acting Managing Director/Chief Executive, FMBN, Richard Esin, who disclosed this in his opening remarks, said the minister also approved the disbursement of the sum of N1.2 billion to over 1,600 beneficiaries under the Bank’s Home Renovation Loan Scheme. Similarly, there was the disbursement of over N2.72 billion to 22,716 retired contributors as refunds in line with the NHF Act; and the Tripartite Committee of FMBN, REDAN and MBAN, which functions as a clearing house for niggling issues affecting efficient housing delivery.
Esin observed that in a bid to ensure easier access to the NHF Loan Scheme for low income earners, FMBN had secured the approval of the Minister to capitalise equity contribution and perfection fees for mortgage applications of N5 million and below, for the Bank’s funded estates nationwide.
“This means that Loan applicants will now have 24 months to pay the associated equity contributions and perfection fees for loan amounts under N5 million threshold, which would normally attract upfront equity contribution of 10% of the loan amount.”
Esin stressed the need to be proactive in the face of the anticipated increase in the supply of mortgage-able housing stock, which will be brought on stream through various efforts by the Bank and the Federal Government, including the National Housing Model expected to deliver 30,000 housing.
Also, there is a Memorandum of Understanding between FMBN and Shelter Afrique to provide $2 billion construction finance, accessible by members of Real Estate Developer of Nigeria (REDAN), aimed at providing 10,000 housing units annually for the next 10 years.
More so, there is a renewed drive to complete the Bank’s funded estates across the country, which were previously abandoned, capable of supplying over 25,000 housing units, over the next three years.
He expressed optimism that efforts in 2016 will yield the desired results in 2017, and urged the staff to be focused and steadfast in carrying out their functions, adding that staff welfare and capacity development would be a priority for the management.