The neglect of the Nigerian housing sector since independence has led to an acute shortage of houses for desiring citizens. But the sector, if properly funded in the way of Singapore, Hongkong, Dubai, has the capacity to take the country to its destination.
This was the position of the founder and Managing Director of Platinum Mortgage Bank limited, Emmanuel Mbaka, an engineer while speaking on the challenges of the housing sector in Nigeria in Abuja recently.
The PMB boss, who was fielding questions on the recent award to his bank as the best mortgage bank in Nigeria in loan processing and disbursement by the sector regulator, the Federal Mortgage Bank of Nigeria FMBN, lamented that the sector is grossly underfunded and as such, both arms of the sector: the estate development funds and funds available for long term mortgage creation are not available for the operators to do the needful.
He warned that the sector would continue to drag on if the government fails to restructure the present funding system that has yielded less result.
‘‘We have a catalogue of challenges, but I will summarise it as funding. The sector itself is underfunded. Both estate development funds and funds available for long term mortgage creation are not there. Not until funds are made available, the sector will continue to drag on.
‘‘Yes, there are funds at the capital market but at what cost. Mortgages are done at single digits. Mortgages are done at single digits, so it is quite difficult to have funds that are available in single digits. That is a major challenge in the sector. Eighty per cent of funds in circulation are being controlled by the government”, Mbaka noted.
The Nigerian housing sector is said to be facing about 18 million housing deficit due to the failure of the country to invest in the sector substantially by successive administrations.
Mbaka, who is also the Chairman, Governing Board, Project Development Agency PRODA, said the present condition of operators in the Nigerian housing sector, where they go cap in hand before government listens will not augur well for the sector.
Even with the availability of some funds at capital market at high cost, he stressed the need for the provision of low-interest loan for the mortgage institutions as it is only through single-digit loan that operators in the sector can thrive.
Effective Regulation
While calling for a robust regulation as a recipe to the sectoral challenge, he
said that the government had done so much to other sectors in form of
subsidies, and is expected to do same in the housing sector.
‘‘Everybody goes cap in hand to government to do what they are supposed to do. Eighty per cent of funds in circulation are being controlled by the government. The government had done so much to other sectors in form of subsidies, we expect such to be done in our sector.’’
On the operation of the National Housing Fund NHF, he said that though it is efficient and effective, there is a need to restructure the Fund so that many people will be contained in the scheme.
‘‘It is very efficient and effective; the only limitation is funding the NHF. There are limited funds that are being used. There are a thousand and one applications from people wanting to own houses under the NHF at the same time. That you cannot get at a go.
We have to find a way to structure it so that as many people as possible are contained in the scheme. As far as Platinum is concerned, the NHF is effective.’’
FMBN Award
On the award to Platinum Mortgage Bank, Mbaka said the secret of the bank’s
success and sustenance is hinged on being customer-centric, telling them what
they have capacity to do and make sure they deliver on such promises.
‘‘We at Platinum have tried as much as possible to be honest and diligent to our customers. Platinum realises that customer comes first. This appears to be the secret of our sustenance, being straight to them, telling them what we have capacity to do and as much as we tell them we can do, we make sure we deliver.
‘‘For the first time, FMBN is giving that award, we are privileged to be the institution that got that award. It gives some respite and makes us happy, which means that what we are doing in the sector is being recognised and appreciated by the highest institution in our sector.
‘‘We will keep celebrating it and work very hard to maintain that position by next financial year.’’
On what the bank has done differently to improve its service delivery, Mbaka said the bank came up with a product called ‘Fast-Track Mortgage Facility’, an in-house programme developed, an indigenous product by Platinum Mortgage Bank as a way of fast-tracking homeownership. People have complained about the time it takes for them to go through the processes of acquiring houses.
‘‘Here in Platinum, we sat down and came up with a programme that makes it possible that within 48 hours, you must have satisfied the various requirements towards having a roof over your head. It is real. Any Nigerian above age 21 with verifiable sources of income not just a civil servant but has a business is automatically qualified.
‘‘Once we verify that you have the capacity to pay back within the period, we will enrol you in our fast-track college. We have 18 branches across the country. Just work into any of our branches, request for fast track application form and feel it, meet up with all information there and we process it within 48hours, you can kiss your house.’’
He advised Nigerians to look forward to the housing sector, the real estate sector and the mortgage sub-sector of the economy in the ongoing effort to diversify and grow the economy.
‘‘I can authoritatively say that most of the first world countries like Singapore, Honkong, and Dubai have migrated from 3rd world countries to 1st world countries. They never had oil. Nigeria could equally copy from them. The sector has been neglected since the creation of Nigeria, I will advise government to look into the sector, it has capacity to take us to our destination,’’ he said.
AHN
