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Tag: FMBN

  • Loans recovery: FMBN rakes in N18.9bn in 2024

    Loans recovery: FMBN rakes in N18.9bn in 2024

    Mr Shehu Osidi, the Managing Director and Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), has said the bank raked in N18.9 billion in 2024 from the recovery of bad loans.

    Osidi made this known on FMBN Day at the ongoing Africa International Housing Show (AIHS) on Thursday in Abuja.

    The theme for the Housing Show is, “Re-imagining Housing Finance: Opportunities and Lessons for FMBN”.

    Osidi recalled that, at the same event  in 2024, the bank announced the constitution of seven recovery task teams to recover delinquent loans across the country’s geo-political zones.

    “By the end of 2024, the teams had raked in over N10.9 billion in bad loans.

    “This was in addition to our normal recovery activities which also yielded the sum of N3.1b in the same year. The recovery from the teams is currently at over N18.9bn,’’ he said.

    Osidi said that the bank also improved its loan approvals significantly within same period.

    According to him, a total sum of N71.5 billion in loan has been approved, compared to N39.7 billion in 2023.

    He added that under the National Housing Fund (NHF) operations, the bank’s collections grew by three billion naira in 2024 resulting in total collection of N103 billion.

    Osidi said this was compared to the N100 billion the bank recorded in 2023.

    “Notably, we were also able to clear a four-year backlog out of our outstanding unaudited accounts of 2018, 2019, 2020 and 2021, demonstrating our renewed commitment to financial transparency and good governance.

    “I believe by the time we come to this platform next year, FMBN should have been up to date in its audited accounts. Our target is to achieve this milestone by the end of this year 2025,” he said.

    Osidi said that FMBN’s financial performance has also improved; adding that the bank made an operational surplus of N11.5 billion, making it the first time it recorded such achievement in over 30 years of existence.

    He said that with prudent management and growing operations, FMBN was on track for another surplus in 2025.

    According to him, this is a proof that FMBN’s policies are yielding results, and the bank is on the right track.

    The Managing Director said FMBN was offering deliberate and substantial support for the Ministry of Housing on its housing delivery agenda under the Renewed Hope Housing programme of President Bola Tinubu.

    He said that the bank has so far provided N100 billion off-taker guarantee to facilitate the mobilisation of required funding for the Renewed Hope Housing and Estates programme across Nigeria.

    Osidi explained that those projects were currently ongoing in Abuja, Kano, Lagos and other locations across the country.

    He further said that FMBN has also extended additional funding facility of N19.9 billion for the Karsana project in Abuja.

    “This is apart from our funding of Renewed Hope City, Ibeju Lekki Lagos to the tune of N27 billion to deliver 1,500 units of two and three bedroom apartments.

    “The Bank is also providing mortgages for Nigerians who are contributors to the NHF to off-take the houses constructed under the programme across the country,’’ he said.

    Osidi said that the bank is also introducing new products to deepen affordable home ownership and promote financial inclusion.

    He disclosed that, starting from August, three ground-breaking products will be rolled out.

    These includes: The FMBN Non-Interest Mortgage Loan, which aligns with ethical finance principles to cater for the needs of Nigerians who prefer non-interest banking models.

    The second is, FMBN National Housing Fund (NHF) Diaspora Mortgage Loan, specifically designed to provide a safe and seamless homeownership pathway for Nigerians living abroad, to be launched on Aug. 31.

    Osidi said the FMBN National Housing Fund (NHF) Diaspora Mortgage Loan is in collaboration with NiDCOM and the Central Bank of Nigeria.

    He said the third product is Rent Assistance, a customised product tailored to meet the immediate needs of NHF contributors in both formal and informal sectors before they own their homes.

  • N40m Diaspora Mortgage: FMBN disclaims partnering HXAfrica

    N40m Diaspora Mortgage: FMBN disclaims partnering HXAfrica

    The Federal Mortgage Bank of Nigeria (FMBN) has denied reports circulated by Housing Exchange Africa (HXAfrica) on a purported N40 million mortgage pre-financing scheme, which referred to FMBN as a partner.

    Mrs Virginia Jang, Group Head, Corporate Communications, FMBN, said this in an official disclaimer by the mortgage bank on Saturday.

    Jang explained that, although HXAfrica applied for some engagement with the bank, it has not been granted any approvals, nor has the bank entered into any formal arrangement with it.

    She said: “Although, HXAfrica applied for some engagement with the bank, it has not been granted any approvals, nor has the bank entered into any formal arrangement with it.

    “FMBN and NIDCOM remain committed to the roll-out of the Diaspora Mortgage Scheme after obtaining the necessary regulatory approvals.

    “We will endeavour to provide official information and updates on our respective websites and social media handles to avoid the general public being misled.”

    According to her, NIDCOM has issued a similar disclaimer on the purported HXAfrica mortgage pre-financing scheme, hence, the general public should note accordingly.

  • Reps task FMBN on provision of affordable houses

    Reps task FMBN on provision of affordable houses

    The House of Representatives ad hoc committee investigating non remittance to the National Housing Fund (NHF) and utilisation of funds from 2011 to date Monday challenged the Federal Mortgage Bank of Nigeria (FMBN) to ensure that government workers and other Nigerians who subscribed to the National Housing Scheme have access to affordable and quality housing.
    Chairman of the committee, Hon. Dachung Musa Bagos gave the charge when he led his team on oversight function to the projects being executed by the FMBN in conjunction with other developers in Abuja.
    Speaking at the Mshel Homes at the Aviation Village on Airport road after inspecting the one of estate being handled by the FMBN and Mshel Atlantic City, Bagos said housing was one of the basic needs of man and the committee will ensure that the FMBN utilize the funds by timely delivering houses to the beneficiaries.
    He said “The most important thing for us is to ascertain the utilization of the housing funds. Let every civil servant get what is due to them. What we require from you is good and quality houses. So, the funds must be properly utilized and the target beneficiaries get their due.
    “We encourage you (FMBN) to continue working in line with the provision of the Act establishing the bank and part of our recommendation is for the committee on housing to follow up with the 24-month completion period you have given us”, he stated.
    At another estate in Idu, Hon. Bagos lamented about the lack of infrastructure, especially roads in accessing the facility and urged the FMBN and the developers to pay special attention to the provision of primary infrastructure.
    He said “We still want workers and other subscribers to the housing fund to have value for all the buildings. We will not tolerate substandard houses. From what we have seen so far, we will compile our findings and make appropriate recommendations to the House.
    “We will also recommend that the standing committee on housing should keep a tab on all these projects and the issue of primary infrastructure. And I must remind you that we are here not just for non-remittance but we are also concerned about the end product; the quality of houses you are providing for Nigerians. This is very key. If people have invested their money, they must be given standard houses to enjoy”, he stated.
    Bagos also urged developers to deliver quality jobs and avoid using substandard building materials adding that “We do not want a situation whereby, after taking over the houses, we start hearing of collapsed buildings. Let us have houses that are habitable and sustainable”, he advised.
    While briefing the committee, the managing director of FMBN, Mr. Madu Hamman said the contract was awarded in 2021 but work commenced in 2022 adding that the project will be completed in 24 months’ time.
    The estate is made up of 135 terrace units of 3 bedroom duplexes and was meant for the staff of the FMBN, which is financed by their cooperative society.
    At another estate in Idu, the managing director informed the committee that there are 337 units of terrace with each of the units made up of 6 blocks.
    He said eight cooperative societies including that of the Federal Staff Hospital (FSH), Jabi had 33 units each and assured the committee that the project would be completed in December.

  • How IPPIS failed to remit N26.6bn for workers in 2 years

    How IPPIS failed to remit N26.6bn for workers in 2 years

    The Federal Mortgage Bank of Nigeria (FMBN) says the Integrated Personal Payroll Information System (IPPIS) failed to remit N26.6 billion of workers’ contributory funds in two years.

    Mr Madu Hamman, Managing Director of FMBN, said this on Thursday in Abuja while appearing before the House of Representatives Ad hoc committee probing the non-remittance to the National Housing Fund (NHF) and Utilisation.

    According to him, from October to December 2022 there were 40 per cent unremitted payments to FMBN resulting from revenue drive by the Federal Government and a total of N11.630 billion was involved.

    “From January to December 2022, N11.587 billion was not remitted as backlog payments for MDAs from IPPIS, while N3. 356 billion was not remitted from April to July 2021 as outstanding failed payments for 2021 from IPPIS,” he said.

    Hamman explained that some NHF payments meant to be paid to FMBN as housing contributions had been wrongly made into the Federal Government Loan and Scholarships Board, adding that 14 MDAs were affected by the wrong payments.

    He said all contributors were eligible for a full refund of their contribution over the years including accrued interest of 2 per cent upon retirement.

    Others, he said, were by attainment of 60 years or inability to continue due to incapacitation or death, adding that FMBN had refunded N66.678 billion to 444,637 beneficiaries.

    Speaking on projects executed through various means, Hamman said, FMBN ensured it gave loans to register members of the association of developers.

    He said that FMBN also had the regular primary mortgage bank from interested individuals where it disbursed N139.6 billion to 24,332 beneficiaries.

    On the ministerial pilot scheme, he said the Federal Ministry of Works and Housing provided land for those on the scheme and it had spent N38 billion to build 5,443 units of housing.

    Reacting to the allegations, Mr Ekwem Dem, Deputy Director, IPPIS in the Office of the Accountant General said, ” On our own part, we are just hearing some of these allegations.”

    He said, for instance, the ‘no work no pay’ for members of ASUU remittances was still hanging, adding that there was a need for a reconciliation window, “so we can see the area of convergence”

    Rep. Dachung Bagos, the Chairman of the Committee, said it would go on oversight of some of the projects claimed to have been executed by FMBN and where they were located.

    “We are going to do some random checks to see the utilisation of this work, we are going to oversight all these projects

    ”We need to know why the Nigerian civil servants are not given what is due to them, even if we have to go with a tricycle; we will go.

    ”Some of us are engineers. We are going to receive some of these things, we must get value for our naira and Nigerians must get value for their money,” the chairman said.

    On Wednesday, the Nigeria Labour Congress (NLC) threatened to pull out civil servants from the NHF contributory funds over the non-remittance of deductions made.

    President of NLC, Joe Ajaero made the threat while appearing before the House of Representatives Ad hoc Committee on Non-Remittance to the NHF and Utilisation of the Funds from 2011 till Date.

    According to Ajaero FBN had refused to send alerts of how much civil servants have contributed including their monthly deductions.

    He urged the lawmakers to take drastic steps to remove the encumbrances to affordable and quality housing to millions of Nigerians especially workers who make the most contributions to the NHF.

    This according to him is as
    identified in the memorandum and other memoranda submitted to the committee.

    He said that the immediate past Managing Director of FMBN Mr Ahmed Dangiwa who is now the Minister of Housing and Urban Development said he left behind N120 billion in the coffers of
    the bank.

  • FMBN gets new CEO

    FMBN gets new CEO

    Hamman Madu has been appointed the new managing director of the Federal Mortgage Bank in the reconstitution bank.

    The appointment was approved by President Muhammadu Buhari, with a view to repositioning the bank as a core banking institution with core competence in mortgage finance.

    Recall that the President had, in January this year, appointed Mr Ayodeji Ariyo Gbeleyi, a Chartered Accountant and a well-known financial expert as Chairman of the Board.

    In the new Board, Hamman Madu representing the Northeast zone with a background of over 30 years in the mortgage industry is the Managing Director/ Chief Executive Officer.

    Other members are: Umar Zubaida, Executive Director, Finance and Corporate Services representing the Northwest zone; Chukwuma Kingsley, Executive Director, Business Development & Portfolio Management (BD&PM) representing the Southsouth zone; Mustapha Lukman Olayiwola, Executive Director, Loans & Mortgage Services (L&MS) representing the Northcentral zone; Asein Abimbola from the Southwest zone representing the Federal Ministry of works and Housing; Ejezie Sandra Nkechi, Southeast, representing the Public as well as two representatives of the Central Bank of Nigeria.

    The appointment of the Board takes effect from April 13, 2022 with the exception of the Chairman, Mr Ayodeji Ariyo Gbeleyi whose appointment took effect from January 5, this year.

     

  • Buhari appoints Ayo Gbeleyi as Chairman FMBN

    Buhari appoints Ayo Gbeleyi as Chairman FMBN

    President Muhammadu Buhari has approved the appointment of Mr Ayodeji Gbeleyi as the Chairman of the Board of Directors of the Federal Mortgage Bank of Nigeria (FMBN).

    Mr Femi Adesina, the President’s spokesman, confirmed this development in a statement on Friday in Abuja.

    ”A Chartered Accountant and an Associate of the Chartered Institute of Taxation, Gbeleyi is a well-known financial expert who was once a Commissioner for Finance in Lagos State,” Adesina said.

    Gbeleyi, who is also a player in the aviation sector, replaces Chief Adewale Adeeyo, who passed on recently.

  • We are repositioning FMBN to ensure affordable housing delivery – FG

    The Minister of State for Power, Works and Housing, Mustapha Shehuri, has commended the Federal Government’s decision to strengthen and recapitalise Federal Mortgage Bank of Nigeria (FMBN) with N500 billion.

    A statement signed by Mr Olatunji John
Principal Information Officer of the ministry, stated that the government’s gesture would further reduce the housing deficit in the country.

    The Minister had visited the Executive Governor of Nasarawa State, Alhaji Tanko Almakura in continuation of his inspection of ongoing works on the National Housing Programme (NHP) in the North-Central geo-political zone.

    According to the minister, this gesture will go a long way to make mortgage facilities accessible to Nigerians.

    Almakura, represented by the Deputy Governor of the state, Mr Silas Agara, thanked the Federal Government for the collaborative effort through providing land for the NHP project in the state.

    Almakura appreciated the Federal Government for initiating the programme, adding that it would have a multiplier effect on nation’s economy.

    According to him, it will create employment, enhance expertise on professionals in the built industry and create local content market.

    He assured the Minister that the state would continue to partner with the ministry to ensure the successful completion of the project.

    The 76-unit Housing Estate comprises of four units of one-bedroom, 48 units of two-bedroom and 24 units of three-bedroom apartments.

    He expressed satisfaction with the location and the level of works done so far.

    Also, the Minister inspected the construction work which is at various levels of completion at the 80-unit NHP project site in Makurdi, Benue State, where he met with contractors, artisans, food vendors, masons and labourers.

    While stating his mission in the state, the Minister expressed appreciation to the government for providing land for the construction of the housing programme.

    Shehuri noted that in spite of the present economic situation of the country the administration was resolute in fulfilling its campaign promises to Nigerians including that of housing.

     

     

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