February 26, 2022


The Federal Mortgage Bank of Nigeria (FMBN), has said that it cannot be funding houses that Nigerians cannot afford and developers should come up with a system of building cheaper houses for low income earners.

Group head, Cooperate Communications, FMBN, Lawal Isa Kauri stated this while responding to a request by a developer, the managing director, Drekford Global Concept Limited, Mr Daniel Oparinde, who called on the bank to re-assess the mortgage system to reflect the current economic realities in the country.
He appealed to the FMBN to increase the current N15 million mortgage cap in view of the high cost of building materials in the country.

Speaking on the rising cost of construction materials, the real estate developer argued that the federal mortgage system is no longer adequate to address the housing needs of Nigerians, stressing that the private sector should be involved in bridging the housing gap by providing attractive mortgages to citizens.

Oparinde stated, “Gradually, the Nigerian mortgage system is getting better but the mortgage system needs to start working with the reality of the current prices of construction materials. It also needs to work with the reality of how much it costs to deliver a home.
“The cap, for example, is N15 million. A decent apartment located within the city would cost more than that except the government is encouraging people to go to remote areas to own a home. Even at that, the high cost of building materials is eating a large chunk of the money.

“I would be saying at this point that it is important that the Federal Mortgage Bank be looking at these factors and consider and reassess how much an individual could access when it comes to the federal mortgage.”
Responding, Kauri said that FMBN is looking at the bigger picture not only on the side of developers.
Source: leadership