FMBN posts N2.7bn operating surplus for 2016

Federal Mortgage Bank of Nigeria (FMBN) posted operating surplus of N2.7 billion for the year ended December 2016, marking the bank’s return to profitability for the first time in over two decades.
This was one of a number of highlights at the bank’s 2016 Business Performance Review Session, which took place between January 25 and 27, 2017, in Abuja.
The bi-annual programme was conceived to provide an opportunity for Groups and Field offices to report on their key performance indicators, identify critical factors affecting performance, and proffer pragmatic solutions.
Additionally, the session allows for brainstorming on strategies for improved performance and sustained growth in the immediate future and a review of the broad provisions of the 2017 budget and communicates its goals to the top management of the bank.
The acting MD/CE, Richard Esin, in his opening remarks, conveyed a message from Babatunde Fashola, minister of power, works and housing, who appreciated the staff for their efforts and achievement in 2016, and outlined his expectations for 2017, including closer inter-agency collaboration, optimal utilisation of resources, stronger stakeholder relationship, and improved staff productivity.
He said the minister was optimistic of the year ahead, as he was expecting the bank’s efforts in the past year to evolve into significant results in 2017.
Other highlights included, N9 billion approved by the minister for the creation of 1,244 mortgage loans across the country, under the National Housing Fund (NHF) Scheme; the disbursement of N1.2 billion to over 1,600 beneficiaries under the bank’s Home Renovation Loan Scheme; the disbursement of N2,722,302,273.57 to 22,716 retired contributors as refunds, in line with the NHF Act, and the Tripatite Committee of FMBN, REDAN and MBAN, which functions as a clearing house for niggling issues affecting efficient housing delivery.
It was also disclosed that in a bid to ensure easier access to the NHF Loan Scheme for low income earners, the bank had secured the approval of the Hon. Minister to capitalize equity contribution and perfection fees for mortgage applications of N5 million and below, for the bank’s funded estates nationwide. This means that Loan applicants will now have 24 months to pay the associated equity contributions and perfection fees for loan amounts under N5 million thresholds, which would normally attract upfront equity contribution of 10% of the loan amount.
Esin stressed the need to be proactive in the face of the anticipated increase in the supply of mortgage-able housing stock, which will be brought on stream through various efforts of the bank and the Federal Government including the National Housing Model expected to deliver 30,000 housing; the memorandum of understanding between FMBN and Shelter Afrique to provide $2 billion construction finance, accessible by members of Real Estate Developer of Nigeria (REDAN), aimed at providing 10,000 housing units annually for the next 10 years, as well as the renewed drive to complete the bank’s funded estates across the country, which were previously abandoned, capable of supplying over 25,000 housing units, over the next three years.
He expressed optimism that the efforts of 2016 would yield the desired results in 2017, and urged the staff to be focused and steadfast in carrying out their functions, adding that staff welfare and capacity development would be a prioritised by management.