Nigeria News

FMBN’s NHF Monthly Collection Hits N2.4bn

The Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Alhaji Gimba Yau Kumo, has said the monthly National Housing Fund (NHF) collection from over four million subscribers to  the scheme has increased from N700 million to N2.4 billion monthly.

The NHF scheme is about 2.5 per cent deduction from government employees on monthly basis.

He attributed the 300 per cent increase in collection to the automation of the bank’s operations and the introduction of e-collection platform processes.
Kumo disclosed this to journalists at the weekend shortly after the inauguration of the new executive management to steer the bank till 2019 in Abuja.

In order to expand mortgage services to the unbanked population, Kumo said the bank had launched the Informal Sector Housing Cooperative scheme to tap into the market segment comprising more than 70 per cent of the country’s working population.

He said: “FMBN has initiated a four million housing unit programme under a partnership struck with the TUC, NLC and NECA aimed at delivering affordable housing for Nigerian workers nationwide.”

The MD said each of the four million contributors to the NHF scheme can now monitor their contributions through the information technology (IT) platform to access and know what they have with the bank, adding that: “What we have also done is that once you achieve the 35 years in service or you have attained the age of 60, you can collect all your contributions with interest that is if you don’t have any mortgage with the bank.”

On the refurbishment loan, he said: “I’m happy to announce that effectively, next week, we will start to rolling out FMBN House Refurbishment Loan (HRL) for civil servants across the federation. Federal civil servants working in other parts of the country do not need to come to Abuja to access the loan.

“Because quite a number of civil servants contributing to the scheme have houses, the furniture and the other household may need to be refurbished.

“This is where the refurbishment loan comes to play in the houses they are living in, and that is why we started this scheme. The federal government housing Loans will be responsible for executing the project in Abuja.”

According to him, the bank had restructured its corporate governance and risk management guidelines in line with international best practice, adding that that has led to its improved lending for estate development and mortgage financing for affordable home ownership across the country.

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