The Federal Mortgage Bank of Nigeria has posted an 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 the highlights at the bank’s 2016 Business Performance Review Session in Abuja, recently.
The bi-annual programme was conceived to provide an opportunity for groups and field offices to report on their key performance indicators, identify critical factors affecting performance, and proffer pragmatic solutions.
In addition, the session allows for brainstorming on strategies for improved performance and sustained growth in the immediate future and a review of the broad provisions of the 2017 budget and communicate its goals to the top management of the bank.
The acting Managing Director, FMBN, Mr. Richard Esin, appreciated and commended the staff for their efforts and achievement in 2016, and outlined his expectations for 2017.
According to him, expectations in 2017 include closer inter-agency collaboration, optimal utilisation of resources, stronger stakeholder relationship, and improved staff productivity.
Other highlights of the bank’s 2016 performance included N9 billion approved by the Minister of Power, Works and Housing, for the creation of 1,244 mortgage loans across the country, under the National Housing Fund Scheme; the disbursement of N1.2 billion to over 1,600 beneficiaries under the bank’s Home Renovation Loan Scheme; and the disbursement of N2.72 billion to 22,716 retired contributors as refunds, in line with the NHF Act.
In a bid to ensure easier access to the NHF Loan Scheme for low income earners, the FMBN boss 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 the N5 million threshold, which would normally attract upfront equity contribution of 10 per cent of the loan amount.
Esin stressed the need to be proactive in the face of the anticipated increase, in the supply of mortgageable housing stock, which would be brought on stream through various efforts of the bank and the Federal Government, including the National Housing Model, expected to deliver 30,000 housing units; the Memorandum of Understanding between FMBN and Shelter Afrique, to provide $2 billion construction finance, accessible by members of the Real Estate Developer Association of Nigeria, aimed at providing 10,000 housing units annually for the next 10 years; as well as the 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 the efforts of 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 prioritised by management.
