The Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Madu Hamman has reiterated the bank’s commitment to addressing challenges facing the mortgage industry in the country.
Mr. Madu Hamman, stated this during a Q1 Mortgage Sector Virtual Forum, organized by FSS 2020, with the theme, “Navigating Current Challenges in the Nigerian Mortgage Market”.
While acknowledging that the cost of borrowing within the mortgage sector is one of the biggest challenges facing the industry, Hamman explained that the inflationary trend in the economy had resulted in higher costs of building materials, which, in turn, had led to higher prices of properties and housing across the board.
This, he said, had affected affordability levels across all mortgage institutions. He noted that the National Housing Fund (NHF) Scheme, which the FMBN manages, is fixed at a single-digit interest rate, which allows contributors to access mortgage.