The Managing Director, Federal Mortgage Bank of Nigeria, Mr Ahmed Dangiwa, says the lender has created more than N80bn mortgages since inception.
Dangiwa stated this during the tour of Sedona Housing Estate in Igbogbo, Ikorodu, Lagos, which was financed by the FMBN and developed by Sedona Business Consults, an Abuja-based firm.
The figure shows a 10.4 per cent increase in mortgage origination in one year, as the bank had in July 2017 stated that it had disbursed N72.47bn to about 17,260 homeowners under the National Housing Fund.
Dangiwa said the bank had created various initiatives to provide housing stocks for the low and medium income earners in the country.
He stated, “The FMBN has gone a long way so far and has created up to N80bn mortgages since inception with more than 20,000 housing stocks for the low and medium income earners. If you give these houses to developers, the prices will not be the same, because cost of finance influences the prices of buildings.
“If developers get credit from financiers with up to 20 per cent interest and add that to the cost of development, the prices of houses will definitely increase. But we got this land for free and funding is minimal, all these are in order to make it affordable to contributors of the National Housing Fund.”
According to him, the Sedona scheme was conceived in 2012 to increase housing stock in the country, and will soon be inaugurated.
“People need to know what the government is doing about housing. This scheme was supposed to be completed earlier, but now, we have made sure it is completed and about to be put to use. The FMBN targets low and medium income earners who contribute to the NHF; we provide what they can afford,” he said.
Dangiwa added that the developer was working on securing the site and creating landscape around it to protect the estate from encroachment.
He said the FMBN was also currently collaborating with labour unions, especially the Nigeria Labour Congress, for housing provision.
“We want to ensure that we produce better designs, better quality buildings and efficient houses with cost-effectiveness in order for the low and medium income earners to have access to housing,” he added.