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FMBN rallies NDIC on loan recovery in distressed Primary Mortgage Banks

“The Federal Mortgage Bank of Nigeria (FMBN) has engaged the assistance of the Nigeria Deposit Insurance Corporation (NDIC) for the recovery of its funds trapped in distressed Primary Mortgage Banks (PMBs) and liquidated commercial banks in the country.”- The Guardian

Already, FMBN has received and executed agreements in respect of six out of eight distressed Primary Mortgage Banks and hopes that with the support of the NDIC, the Bank’s funds in the affected PMBs would be recovered.

The FMBN Managing Director, Ahmed Dangiwa, disclosed these while receiving the Management of Nigeria Deposit Insurance Corporation, led by its Managing Director, Umaru Ibrahim, at the bank’s Corporate Headquarters, Abuja.

Dangiwa was however silent on the names of the distressed PMBs and the liquidated banks and how much is being expected to be recovered from them. He expressed concerns that the housing sector is greatly challenged with the huge housing deficit and poor funding framework.

To provide a pool of long-term funds for Housing, Dangiwa said, government established the National Housing Fund (NHF) scheme and called on employers of labour in the country to deduct and remit 2.5 percent of their workers’ monthly salary to FMBN as required by the law establishing the Scheme.

Assuring that FMBN provides concessionary loans to NHF contributors, he listed products offered by the Bank to include NHF Mortgage loan, Cooperative Housing loan, Home Renovation loan and Rent-to-own housing scheme to be launched soon.

He further extolled the leadership qualities and innovation exhibited by the Management of NDIC, noting that it has resulted in increased efficiency, accountability and professionalism as crystallized in the decline in loss of funds by depositors in the country.

The NDIC Managing Director, Umaru Ibrahim, commended the FMBN for its efforts at nurturing a Mortgage Industry that would facilitate delivery of affordable houses in the country.

He said that the revocation of licences of some Primary Mortgage Banks was necessary in order to have a sound and viable mortgage sector and assured FMBN that his Organisation would assist the Bank in recovering its funds from those distressed PMBs.

Alhaji Ibrahim disclosed that so far NDIC has recovered funds belonging to the Bank from six Primary Mortgage Banks.

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