FG Rolls Out Stress Free Loans For Affordable Housing In Nigeria

The Federal Government, through the ministry of works and housing, has introduced stress-free loans for affordable housing in the country. The loan was rolled out in order to help Nigerians to acquire affordable housing in the country.

Stress-Free Loans
Babatunde Fashola

This was disclosed in Abuja by the Minister of Works and Housing, Mr Babatunde Fashola, at the opening of the 2022 Board Retreat of the Federal Mortgage Bank of Nigeria.

According to Fashola, affordable housing and credit facilities have been a great challenge, especially for Civil Servants in the country.

The program was organized to tackle the problem of access to affordable housing funds and chat ways of repositioning the Federal Mortgage Bank of Nigeria, which provides long-term credit facilities to mortgage Organisations in the country.

The Minister, while highlighting the achievement recorded, noted that problems that could hinder easy access to credit facilities had been removed.

Fashola Said;

“There have been changes that had been made to the eligibility conditions to improve access to finance, for example, the equity contribution ratio for certain types of loans have been reduced, also, the National Council For Housing and Land, last week adopted a recommendation for the Bank to seek NDIC insurance of its contributor’s fund among other measures”.

Also, the Chief Executive and Managing Director of Federal Mortgage Bank Of Nigeria (FMBN), Mr Madu Hamman, said the bank had so far carried out 38 percent on its strategic initiative, while 26 percent are still ongoing. All aimed at providing access to low-cost housing for citizens.

Similarly, Mr Ayodeji Ariyo, the FMBN Chairman Board of Directors, clarified that the high cost of building materials, access to land and mortgage financing are the major obstacles in the construction of houses and performance of the Federal Mortgage Bank of Nigeria.

“There are six pillars promoted as the springboard towards achieving the targets if the five-year strategy plans,

1: to deepen mortgage penetration by facilitating access to home ownership.

2: To strengthen corporate visibility and brand loyalty.

3: to ensure operational excellence to achieve efficient business process among others”. He said.

From their presentations, the Stakeholders agreed that Federal Mortgage Bank of Nigeria being one of the secondary mortgage institutions, must reposition itself to harness its full potential, while taking cognizance of the current economic realities in the country.

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