Stakeholders in the built environment and finance sectors have called for upward review of the capital base of Federal Mortgage Bank of Nigeria (FMBN) from the current N2.5 billion to N500 billion.

While making inputs into the three bills for the ‘Re-establishment of FMBN and its board of directors’; ‘Repeal and establish the National Housing Fund Trust’ and ‘amend Federal Land Registry (Miscellaneous Provisions) Act ’, Tunde Lasakin, president, Nigerian Institute of Building, recommended the sum of N500 billion as recapitalisation for FMBN.

Other stakeholders who supported the move to reposition mortgage system in the country include Real Estate Developers Association of Nigeria (REDAN), Nigeria Labour Congress (NLC) as well as primary mortgage institutions (PMIs) and commercial banks.

While calling for upward review of the N100 billion proposed in section 15(2) of the amendment bill, the stakeholders chided the Federal Government and Central Bank of Nigeria (CBN) for failing to fulfill their financial obligations to FMBN for which they are critical shareholders.

While presenting its position, Benson Upah, NLC head of information and parliamentary liaison officer, opposed the removal of the congress from the bank’s shareholders of which it has performed its financial obligations over the years.

He noted the effective participation of the organised private sector and NLC with a view to ensuring effective representation of public interest in the bank.

Upah, who was accompanied by Nuhu Abba Toro, NLC assistant organising secretary/international relations, also stressed the need for FMBN board to focus on policy matters while the management of the bank runs the day-to-day affairs of the bank without any interference.

On his part, Bode Afolayan, REDAN president, expressed disgust over the inadequacies in the nation’s mortgage system, noting that “what we have today is an advanced cooperative society.”

He noted that “a minimum of N250 billion should be injected into FMBN or else labour and other contributors will continue to regulate the rate.”

Afolayan, who canvassed for effective regulation of the housing sector, emphasised the need for recapitalisation of primary mortgage institutions (PMIs) operating in the country.

While declaring the public hearing open, Aminu Tambuwal, speaker of the House of Representatives, noted that the proposed amendments are very critical in enhancing the living standards of Nigerians.

He noted that “both the Federal Mortgage Bank and National Housing Trust Fund bills are twin schemes that when properly managed would stimulate growth in the economy.”

2014-08-03