Home Foreclosure Fashola says low access to mortgage finance is hampering access to housing delivery in Nigeria

Fashola says low access to mortgage finance is hampering access to housing delivery in Nigeria

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Mr. Babatunde Fashola, Minister of Works and Housing, said that one of the major barriers to housing provision in Nigeria is access to mortgage finance.

He said this Monday in Abuja during the opening of the Federal Mortgage Bank of Nigeria (FMBN) Board and Management Retreat on the theme: “Repositioning of the strategy for optimized performance, organizational culture change and integration of the informal sector”

The Minister noted that to address the challenges of housing delivery in Nigeria, access to mortgage finance must be addressed.

What the minister says

Mr Fashola said there must be a way to help Nigerians pay their rents using their salaries.

  • He said, “If we fail to remove this obstacle, then we will fail in the reason for the creation of the bank.
  • “Something needs to be done to help people pay their rent through their wages, especially the problem of landlords asking for two to three years’ rent payment in advance from tenants whose wages are late.”
  • The Minister urged the Bank to work hand in hand with the Nigeria Deposit Insurance Corporation contributors fund, as other commercial banks are doing.
  • He noted that this will really help fund contributors’ mortgages as there is nowhere in the world that the government 100% funds housing.
  • He asked them to focus the retreat on better ways of serving people saying performance and repositioning were key to setting up the bank to provide housing services to people.

Mr. Ayodeji Gbeleyi, Chairman, Board of Directors, FMBN called for the FMBN and National Housing Fund (NHF) Acts to be revised to incorporate an increase in the bank’s share capital.

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  • He said “Give more flexibility in determining the structure of social capital based on emerging realities. There is a need to amend the NHF Act to increase the increase in fund contributors through a percentage increase in contributions.
  • “Diversification of sources, adoption of initiatives to encourage banks and insurance companies and other potential contributors to actively participate in the NHF program.
  • The Land Use Act does not contain any specific provision for mortgage foreclosure, which poses a challenge for investors, as mortgages can unduly take advantage of the gap to delay the foreclosure process.

Mr. Gbeleyi noted that in order to bridge the gap, states should be encouraged to put in place foreclosure laws through their houses of assembly, adding that only Lagos and Kaduna states had enacted their laws. of foreclosure.