Reps: Only 37% of Nigerians own houses ...seek to strengthen Mortgage Bank Act

Only 37% of Nigerians are house owners, Hon. Shehu Garba said on the floor of the House today, quoting relevant statistics. His statement was made as the Federal House of Representatives began moves to amend the Federal Mortgage Bank Act, which seeks to provide adequate and affordable housing for Nigerian low income earners.The Federal Mortgage Bank of Nigeria Act, 1993 established the Federal Mortgage Bank of Nigeria ('FMBN') to among other things provide long-term credit facilities to Mortgage Institutions in Nigeria. The FMBN was also established to encourage and promote the development of Mortgage Institutions in rural, local, State and Federal government levels in Nigeria.Hon. Ali Ahmed from Kwara state who led the debate on the amendment of the existing Federal Mortgage Bank Act said the Federal Mortgage Bank has become obsolete and as such the need to repeal the Act, and make it function in line with realities on ground. According to Hon. Ahmed who described the Bill as a 'Pro-Poor Bill', the Federal Mortgage Bank has a share capital of 5 Billion naira, which can be used to finance affordable housing.According to Hon. Paul Dike, Nigeria at the moment has a housing deficit of about 16 million houses as such housing is a very important sector that the House members must address in fulfilling their electoral mandates. According to Dike, 'it is very unfortunate that in Nigeria people still suffer for lack of housing, while in other countries people own houses through mortgages'.In another solidarity argument for the Bill, Hon. Shehu Garba said since the establishment of the Federal Mortgage Bank, the bank had been unable to meet up with its expectations due to lack of long term financing. He said the Bill will help broaden the sources of funding for the FMB. Hon Garba who stated that as at a few months ago, statistics show that only 37 percent of Nigerians are house owners, equally canvassed for transfer of funds from the National Housing Fund into securing affordable houses for Nigerians.The Federal Mortgage Bank of Nigeria FMBN was established to provide long-term credit facilities to other Mortgage Institutions in Nigeria at such rates and on such terms as may be determined by the Board of the FMBN in accordance with the policy directives of the Federal Government of Nigeria. The rates and terms for the long-term credit facilities were by statute required to be designed to enable Secondary Mortgage Institutions grant comparable mortgage facilities to Nigerians desiring to acquire houses of their own.
Click here to read full news..