FMBN, Chinese Bank Come To Nigeria’s Rescue Over Housing Deficit

A new rapprochement is already evolving between the Federal Mortgage Bank of Nigeria and the Industrial/Commercial Bank of China, as the latter has promised to bring in funds in form of Foreign Direct Investment to assist the FMBN FMBN in addressing the nation’s housing deficit.

Recently, the Federal Government had said it had commenced discussion with China Export and Credit Insurance Corporation, SINOSURE, and International Commercial Bank of China, ICBC, to source for loan of N936 billion, to fund housing development in Nigeria.

Sources have said the loan when in full operation would have a tenure of 15 to 20 years, with a single digit. But now, the two partners have endorsed a Memorandum of Understanding, which, however, is still awaiting necessary guarantees from Federal Government.

This came to fore last weekend in Abuja, during the FMBN’s Board and management two-day retreat.

The event was also used to review challenges still facing the bank and came up with far reaching decisions aimed at repositioning the bank to enable it achieve its mandates.

Addressing journalists at the end of the retreat, Chairman of the Board, Elder Bisi Ogunjobi, said that one of the key challenges facing the bank was the high debt portfolio, which has accumulated over the years.

He observed that FMBN has embarked on aggressive debt recovery and in the past one-year has been able to recover about N1.2 billion from its debtors.

Ogunjobi added that in an effort to see how the institution can move forward, the board has appointed a reputable international consulting firm to conduct an institutional management study, towards improving corporate governance and adopting sound operational and management policies in order to reinforce the bank and also be able to have an institution that will serve us better than what we have today.

Source: Guardian