The Federal Mortgage Bank of Nigeria (FMBN) has been commended by the Federal Ministry of Housing and Urban Development for its successful implementation of the presidential priorities and deliverables for the second quarter of 2024, with a charge to exceed expectations for the third quarter.
The commendation followed a presentation on implementation of the presidential priorities and deliverables by the Managing Director/Chief Executive of the Bank, Shehu Usman Osidi, to the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa on Wednesday, 31 July 2024 at the Ministry’s headquarters in Abuja. Also present at the presentation were the Minister of State, Engr. Abdullahi Tijjani Gwarzo, Permanent Secretary, Dr. Marcus Ogunbiyi.
Arc. Dangiwa expressed satisfaction at the Bank’s performance, especially after the confirmation by the Director of Planning, Research and Statistics of the Ministry about FMBN’s Key Performance Indicators and actual performance metrics in the second quarter.
While commending the Managing Director for the detailed and well-articulated presentation, he encouraged the Bank towards greater performance in Quarter 3, especially in the areas that still needed improvement. “We are always on our feet even as Ministers to ensure that we deliver and for us to do that, we have to keep track of the agencies that are under us,” he said.
Dangiwa urged FMBN to fully engage the Central Bank of Nigeria (CBN) on the Diaspora Mortgage product, focus on the completion of ongoing and abandoned projects and furnish the Ministry with details on initiatives like the National Mortgage Registry and the Memorandum of Understanding with Shelter Afrique.
On his part, the Minister of State expressed pleasure with the Bank’s presentation noting that it was articulate, explicit and clearly captured the deliverables. He commended Osidi for his demonstrated capacity and acknowledged the performance of the Executive Directors. “More grease to your elbows,” he commended.
In his presentation, Osidi called to mind the Ministerial Performance Bond signed by the Ministers in November 2023, linking their performance to eight presidential priorities as relevant to each ministry. Of these priorities, priority 5, “Enhancing infrastructure and transportation as enablers for growth” was linked to the Ministry of Housing and Urban Development and in turn cascaded to the Bank.
Accordingly, the FMBN is expected to deliver on four key areas which include, construction of affordable housing units, value of support to Primary Mortgage Institutions (PMIs), number of persons benefiting from mortgage loans, and establishment of mortgage registry to facilitate property transactions.
The Chief Executive announced that the Bank delivered 741 housing units in Q2 and also recorded an achievement of 92.7% for value of support to PMIs, to the tune of N828.064 Million as against the expected N893.75 Million. On number of mortgagors for Q2, FMBN recorded 3,674 as against the expected 6,025 for the quarter, a better performance hampered by CBN’s Single Obligor Limit (SOL) which hindered the PMIs from drawing down on approved mortgage loans.
The Bank, however, recorded a 100% success on the establishment of a mortgage registry to facilitate mortgage transactions, with an achievement of 6.25% which is the quarterly expectation from the FMBN.
Osidi further outlined the plan of action for the Bank to surpass its Q3 deliverables, focusing on completion of ongoing projects, funding of new projects, sustenance of engagements with CBN, the National Assembly, Mortgage Bankers Association of Nigeria (MBAN) and other relevant stakeholders, to address the legacy issues hindering better performance by the Bank.
He also announced the Bank’s plan to conclude the automation of credit processes to improve efficiency and loan volumes, as well as commence the digitalization of mortgage documents in the Internal Collateral Registry as part of preparatory efforts to achieve a functional National Mortgage Registry.
