Real Estate Developers Association of Nigeria (REDAN) is advocating for the recapitalisation of the Federal Mortgage Bank of Nigeria (FMBN) as a potent instrument of tackling the country’s huge housing deficit.
‘’We believe that recapitalising FMBN will solve the housing deficit because FMBN is the only bank that gives loans to developers at an affordable rate. They give loans to developers at 6, 9, and 10 percent’’, REDAN says.
REDAN’s President, Aliyu Oroji Wamakko, was speaking while commending efforts by Works and Housing Minister, Babatunde Fashola, in the sector, advising that the construction of the houses should be private-sector driven.
The REDAN chief noted in Abuja, the country’s capital city that at the moment, the apex mortgage bank in Nigeria is grossly inadequate to solve the huge housing deficit confronting the country.
According to him, the long-overdue recapitalisation of the financial institution is fundamental to the growth of the housing industry as it will empower the FMBN to service both the demand and supply sides of the housing market in Nigeria.
“Recapitalisation is the best answer to help reduce the housing deficit in Nigeria”, REDAN said as it lauded efforts of the Buhari administration aimed at accelerating the pace of reforms in the housing sector through the National Housing Funds (NHF).
Fashola had earlier expressed the need for the creation of a National Housing Funds that developers can access at a reasonable rate to reduce housing deficit in the country.
Wamakko said this is because the private developers do not just build houses but ensure that they are properly maintained, adding, “government has no business in building houses or constructing houses for homeless Nigerian. It is the duty of developers to do so while the government facilitates the process.
“We are happy that the minister of Works and Housing has seen the need to solve this problem via a private-sector approach. We believe it will be a win-win situation for the developer and the government”.
Wamakko assured that private developers will pay taxes and create employment via the initiative.
Commenting on the recapitalization of the Mortgage bank, Wamakko called on Abuja to recapitalise the bank to enable it increase delivery of affordable housing in the country.
