Meeting affordable mass housing needs of Nigeria remains a major task — FMBN boss

By Chris Ochayi

THE Managing Director,Federal Mortgage Bank of Nigeria FMBN, Arc. Ahmed Musa Dangiwa, has said that meeting the affordable mass housing needs of Nigeria remains a major challenge, with estimated 17 million housing deficit in the country, which is anticipated to cost almost N60 trillion.

Dangiwa who made this disclosure in Abuja during the handing over ceremony of the affairs of the bank to him and his team by the former acting MD of FMBN, Mr. Richard Esin, noted that the administration will also develop a well functioning mortgage finance market that is able to attract large, long-term local and foreign investments needed to promote a vibrant, competitive, innovative and sustainable housing market  driven primarily by private sector and public-private partnership, PPP, with FMBN acting as a facilitator, regulator and enabler.

He said that innovative solutions must be put in place to bridge this large gap by the apex mortgage bank and by extension all stakeholders that have strategic roles to play in this respect, stressing, “from my experience in the housing sector and mortgage banking over the years, I am aware of several challenges facing the housing sector, especially those specific to mortgage financing. But today is not the day to focus on challenges; it is the day to identify needed synergy to  deliver on our mandate.

“Indeed, the current Administration is not oblivious of the challenges. Hence, it has resolved to address the housing deficit issues through innovative solutions that include public-private partnership, leveraging private sector capital and increased budget financing of the housing sector. Existence of a viable mortgage system is imperative for tackling the challenges facing the housing sector in Nigeria. It will strengthen home ownership for low-income earners through, for instance, a rent- to-own financing system.

“There is need for all stakeholders to think outside the box in proffering the so much needed financing solutions to the challenges facing the housing sector. More importantly, there is need for the FMBN and its staff to think and  act more strategically in this respect. Under my leadership, all of us will work as a family to assume a forerunner role to achieve this.

“In addition to meeting the housing deficits in Nigeria, mortgage financing offers viable room for promoting the inclusive, diversified and sustained growth objectives of the Government given its strong backward and forward linkages with other sectors of the economy.

“Mortgage financing is an important contributor to economic growth through its multiplier effects. It is capable of promoting private residential investments, attracting foreign exchange inflows and

increasing consumption spending on housing services. It is capable of creating mass jobs for artisans and craftsmen such as electricians, welders, masons, painters, plumbers and to other high level professional such as civil engineers, architects, structural designers”, Dangiwa said.

According to him, availability of affordable home mortgage loans to large cross section of the population serves growth-enhancing and redistributive objectives of the poverty reducing policies of the government, pointing out that this has been proven to be the case in all economies, ranging from developed to developing comparator countries.

The new FMBN boss who noted that this is in addition to widespread benefits that include enhanced savings, financial market development, and housing sector investment stimulation, said “I am highlighting these benefits of mortgage financing to help the public see how important and strategic you and the work you do are to the overall growth and development of the Nigerian economy and personal well being of all Nigerians.”

On his vision for the bank, Dangiwa said, “A well functioning mortgage finance market that is able to attract large, long-term local and foreign investments needed to promote a vibrant, competitive, innovative and sustainable housing market driven primarily by private sector and public-private partnership (PPP) with FMBN acting as a facilitator, regulator and enabler, is our vision.

“A mortgage financing system where affordability, equity and tailored housing products, needs and service delivery for the diverse needs of Nigerians are assured no matter their income level or social status, is what we want to create”, he stated.

He also pledged to work with relevant stakeholders to evolve a mortgage financing regulatory system that would provide a solid foundation for housing finance in Nigeria. “I will ensure the regulatory system is sufficiently effective and robust to protect the interests of existing and

prospective home owners and all Nigerians with respect to home ownership.

“We unleash the potentials of mortgage financing by promoting investment, regulatory, and policy certainties by removing real, perceived and potential risks dampening performance of the FMBN.”

The focus will be on enhancing access to mortgage loans for creditworthy borrowers and ensure availability of consumer-friendly mortgages.

“Build a firm foundation for the future of the housing sector in Nigeria by repositioning the FMBN as a sector leader in driving growth inclusiveness through job creation, poverty reduction and wealth creation.” We will initiate a mortgage finance reform system and process that focus on reorganizing housing management and delivery systems and promoting housing finance assistance to most Nigerians irrespective of their social, economic, educational and political status.

“This would include support for rental housing or rent-to-own, especially for younger, lower-income and less privileged households. We will initiate focused house ownership programmes through target specialized mortgage support for Nigerians by promoting bold, creative, innovative and strategic partnership through leveraging investment interests of private business stakeholders and specialized  donor and development institutions such as the World Bank, African Development Bank, Shelter Afrique.

“We will develop a mortgage financing change agenda that will serve as guiding compass and will fit into the overall housing reform agenda of the government considering the identified challenges and proffering innovative and pragmatic solutions by forming synergy with all stakeholders such as government institutions, private investors, NGOs, development partners and others”, Dangiwa assured.

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