Gabriel Enenche —
The Group Head of Corporate Communications, Timan Elayo, has said the review of loans ceiling is meant to take care of various interests among contributors to the National Housing Fund (NHF) Scheme, while attracting other persons yet to register for the scheme.
The NHF is an initiative domiciled with the Federal Mortgage Bank of Nigeria aimed at mobilising and providing long-term housing loan facilities to Nigerians who are gainfully employed in the public and private sectors.
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Workers enrolled under the scheme remit 2.5 per cent of their monthly salary and can only obtain a loan once in their lifetime. However, some workers accused the bank of failing to live up to its core mandate of delivering affordable and modern homes. These complaints made the bank increase the mortgage loan limit from N15 million to N50 million per applicant.
The Bank lamented the impact of inflation on the cost of land and building materials, noting that N15m was currently not sufficient to construct homes in certain parts of the country.
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They said the new N50m loan ceiling was to ensure equitable access to decent and affordable housing for all categories of contributors to the National Housing Fund Scheme.
“We have realised as a bank that whilst the N15m ceiling may be sufficient in some parts of the country, it may not be so in other parts such as Abuja, Lagos, Port Harcourt, Kaduna and Kano, given the cost-of-living index, justifying an upward review of the ceiling, he said.
“The review became necessary in consideration of existing economic realities, including the impact of inflation on the cost of land and building materials”, he stated.
