The attention of the Management of the Federal Mortgage Bank of Nigeria
(FMBN) has been drawn to newspaper reports, particularly the Daily Trust
Newspaper publication of March 20, 2020, alleging N360billion fraud at the
bank. We wish to categorically state that the allegation is false, baseless
and totally misleading.
The general public is invited to note that the Board and Executive
Management of FMBN has championed the principles of professionalism
and transparency in running the affairs of the bank through regular updates
on its operations to the general public and stakeholders.
The facts surrounding the operational performance of the bank in delivering
affordable housing finance are clear and verifiable:
HIGHLIGHTS OF CURRENT MANAGEMENT’S SCORECARD: APRIL
2017 TO JANUARY 2020
Within the last three years, being the tenure of the bank’s current
management (April 2017 to January 2020), the bank mobilized a total of
N138.5 billion as collections under the National Housing Fund (NHF)
Scheme. The figure accounts for 37% of the cumulative collections of
N371.4 billion from 1992 to date.
Within this period, the bank disbursed N88.6bn while the sum of N22.9
billion (68% of a cumulative N33.7 billion) has been refunded to about
158,000 of a total of 290,543 Nigerian workers who exited the Scheme in
line with the provisions of the NHF Act.
In addition, the bank created 21,046 mortgage loans and disbursed 43,312
home renovation loans as part of addressing the housing finance needs of
low- and medium-income Nigerians.
Currently, various categories of loans totaling 127.4 billion are at various
stages of processing for disbursement to beneficiaries.
ONGOING DRIVE TO ATTRACT ADDITIONAL FUNDING FOR
INCREASED AFFORDABLE HOUSING DELIVERY
The general public is invited to note that despite these modest
achievements, the management of the bank is not unmindful of the huge
housing deficit. While FMBN aspires to do more, the bank is challenged by
a weak capital base (only N2.56 billion of a mere N5 billion capital is paid
up), and the funding of its operations is currently limited to the resources of
the NHF Scheme.
It is in this regard that the bank is aggressively seeking recapitalization to
the tune of N500 billion and exploring opportunities for other sources of
low-cost, long-term funds locally and globally, in addition to pursuing full
compliance with the provisions of the NHF Act, to address Nigeria’s
housing funding gap.
As a financial institution in Nigeria, it is important to also reiterate that the
FMBN falls under the supervision of the Central Bank of Nigeria (CBN)
which conducts annual examination exercises. Internally, the bank has also
appointed an audit firm of international repute that audits its financial
statements as required of a corporate entity in addition to oversights by the
Offices of the Accountant-General of the Federation, the Auditor-General of
the Federation as well as the relevant Committees of the National
Assembly.
Additionally, the current Board of Directors approved and is implementing
corporate governance and risk management frameworks comparable to
any financial institution in the world in line with banking regulations,
These policy measures and regulatory oversights are to ensure the safety
and prudence in the use of funds, inclusive of NHF contributions, under the
management of the bank.
We therefore wish to encourage the media to verify information made
available to them and balance their reports before going public in line with
respected and accepted global tenets of the profession.
The Board and Executive Management remains committed to repositioning
FMBN as a stronger and more impactful institutional tool for the delivery of
affordable housing to Nigerians in line with the ‘Next Level’ Agenda of the
President Buhari Administration.
Signed
Ahmed Abubakar
Group Head, Corporate Communications, FMBN
