Federal Mortgage Bank eases conditions for housing loans

The Federal Mortgage Bank of Nigeria (FMBN) said it had commenced the implementation of the new conditions for accessing loans from the National Housing Fund (NHF).

The new conditions would allow Nigerians with steady income to access housing loans of up to N5 million with zero equity contribution and 10 percent contribution for housing loans above N5 million to N15 million.

In a statement by the spokesman of FMBN, Zubaida Umar, said the revised requirements represent a 100 percent reduction in the equity contribution payable by the beneficiaries.

In the past, beneficiaries of the housing loans were expected to contribute 5 percent and 20 percent for the N5 million and N15 million loan bands respectively.

In his reaction, the Managing Director/Chief Executive Officer of the bank, Ahmed Musa Dangiwa, said the reduction was aimed at ensuring that more Nigerian workers could afford quality housing.

“I am delighted that we have been able to achieve this groundbreaking feat. It is a huge win for the Nigerian workers and particularly those that contribute to the NHF.

Read also: Nigerian govt disburses interest-free loans to 31,594 microenterprises

“It will go a long way towards reducing the financial burden of homeownership that contributors to the fund have been carrying for the past three decades. I am glad that today, we have been able to crash it by over 100 percent,” he said.

Two weeks ago, Dagiwa said the Federal Government was planning to inject N500 billion ($1.4 billion) into FMBN over the next five years to increase home ownership in the country.

Currently, Nigeria’s housing deficit is estimated 17 million units, a possible rationale behind the country’s move to seek for ways at improving access to home loans.

By Oluwasegun Olakoyenikan…

 

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