The Federal Mortgage Bank of Nigeria (FMBN) on Wednesday disbursed the sum of N1.2 billion as Home Renovation Loan to 1, 207 personnel of the Federal Road Safety Corps (FRSC), across the country.
Managing Director of the bank, Mr Ahmed Dangiwa who made the presentation of the cheque in Abuja said of the figure, N640 million was for 640 beneficiaries in the Federal Capital Territory (FCT).
According to Dangiwa, this is in addition to the sum of N1.8 billion approved for 195 staff of the corps as mortgage loans for the purchase of their own houses.
“This is a clear demonstration of the Corps Marshal’s unique concern for the welfare of the FRSC members through collaboration with FMBN to address their housing needs.
“It is pertinent to note that a total sum of N15.7 billion has so far been disbursed by the bank to 19,169 beneficiaries across the country under the Home Renovation Loan window.”
He said that the FMBN was a leading player in the housing and construction sector of the Nigerian economy.
“It has a mandate to provide affordable mortgages to Nigerian workers particularly low and medium income earners through the National Housing Fund (NHF) scheme.
He said the fund was sourced from 2.5 per cent of the basic income of Nigerian workers earning the minimum wage and who were 18 years and above.
He said the overall objective was to provide cheap source of loan-able funds to nurture and sustain the mortgage industry and facilitate affordable home-ownership for the low and medium income earners.
“Section 14(2) of the National Housing Fund Act Cap N.45 of 1992 stipulates that a contributor to the Fund can access a loan from the Fund for the purpose of building, purchasing or renovating of existing homes or houses.
“In other to achieve this, FMBN has developed concessionary loan windows to enable Nigerians access to mortgages for home ownership,” he said.
He however said that the bank’s objectives had been hampered by challenges including lack of access to land, inadequate funding for the housing sector and inaccessibility of mortgage loans due to lack of proper title to landed properties.
“In consideration of these challenges, it became necessary for FMBN to develop some quick-wins that will allow a greater number of Nigerians, access to the National Housing Fund, consequently, the FMBN Renovation Loan was introduced by the bank.”
He explained that the loan window afforded Nigerians who were contributors to the Fund an opportunity to access mortgage loans to renovate or improve existing properties which were personally owned by them or through family ownership.
“We have also given succour to Nigerians with the cancellation of equity requirement for NHF loans under N5 million and a reduction in equity percentage payment to 10 per cent for loans from N5 million to N15 million from the initial 20 per cent to 30 per cent.”
In his remark, FRSC Corps Marshal, Mr Boboye Oyeyemi said “When we came on board in 2014, one of the first things I told the staff was that I would ensure ‘one man, one house’and we have a workforce of over 20,000 staff.
“I am happy we have made tremendous progress in respect of this.
“We want people to be happy after retirement. I want people to have a life after retirement, people to be comfortable after retirement,” Oyeyemi said.