Have you heard of the Federal Mortgage Bank Of Nigeria before? Do you know it’s functions? Do you have any idea how it can help you out in your bid to live well as a Nigerian and as a human being? We will let you have the answers to these questions shortly.
It is well known that housing is a crucial part of anyone’s existence. Having a place to lay one’s head is one of the most important things anyone can have. In fact, shelter is one of the three most basic needs of human beings, the others being clothing and food.
Needless to say, the successes or failures of the housing sector play a very crucial role in the satisfaction of any set of people and how they perceive their government. It also plays a crucial role in determining a nation’s Human Development Index.
This is why many governments pay great attention to the provision and delivery of affordable housing to its citizens by providing assistance in that regard through the following ways;
– proving assistance in finance through grants, subsidy or aid, or
– providing assistance through the provision of infrastructure to facilitate the process.
The Nigerian government is not left out in trying to help its citizenry to afford proper housing which is why the Federal Mortgage Bank Of Nigeria was created.
READ ALSO: The Top 5 Most Developed Countries In Africa 2018; Is Nigeria On The List?
The Federal Mortgage Bank Of Nigeria
The Federal Mortgage Bank Of Nigeria is the apex mortgage bank in Nigeria which is saddled with the responsibility of meeting the housing needs of all citizens of the nation. Sadly, though, many people don’t even know anything about it’s establishment or even its existence.
The Federal Mortgage Bank was established in 1956. At the time of its establishment, it was known as the Nigeria Building Society (NBS). The NBS was a joint venture between the Federal Government, the Eastern Governments of Nigeria and the Commonwealth Development Corporation. Like the name suggests, the NBS was formed to aid the provision and acquisition of affordable housing.
However, in 1973, the Federal Government was given full control of the NBS through the Indigenization Act and it was renamed to the Federal Mortgage Bank of Nigeria (FMBN).
The Federal Mortgage Bank of Nigeria, in 1994, went on to acquire the status of the apex mortgage institution in Nigeria following the apt proclamation of the Mortgage Institutions Act 53 of 1989 as well as the FMBN Act 82 of 1993. It has since gone on to introduce different kinds of reforms to meet up to its mandate of providing citizens with affordable housing.
In its bid to help out Nigerian citizens get access to affordable housing, the Federal Mortgage Bank of Nigeria introduced a savings scheme called the National Housing Fund (NHF). This NHF was established in 1992 primarily to help all kinds of Nigerians especially those within the medium and low income levels, to own houses.
Now, let’s talk about the functions of the Federal Mortgage Bank Of Nigeria.
Functions Of The Federal Mortgage Bank Of Nigeria
Realize that the major aim of the Federal Mortgage Bank of Nigeria is to help in properly advancing home acquisition or ownership among all Nigerians. However, to help you understand some more, we will discuss its functions below.
The Federal Mortgage Bank Of Nigeria has been established to;
1 – Properly promote and encourage the development of mortgage institutions at Federal, State, Local and rural levels around the country so that everyone can effectively participate.
2 – Make sure it provides some long-term credit services to the other mortgage banks and mortgage institutions in Nigeria and do so at very affordable rates. This will eventually allow these mortgage banks and institutions to give out long-term loans to the many individuals who want to acquire their own houses.
3 – Give out the licensing authority to all the existing secondary mortgage institutions around Nigeria.
4 – Encourage the ideal and healthy growth of the needed secondary mortgage institutions around the country in order to service and meet the housing needs of Nigerians in search of their own homes all over the country.
5 – Adequately mobilize foreign as well as domestic funds into the housing sector. This is because it serves as the direct link between the capital market and the mortgage market.
6 – Regulate as well as monitor all the activities of the other mortgage institutions in Nigeria so that there is no friction or deviation from the set principles and standards.
7 – To keep introducing lots of innovative products and programs which are mortgage related every now and then, in order to achieve its mandate.
