FMBN, AMCON partner to tackle challenge of non-performing loans

The Federal Mortgage Bank of Nigeria (FMBN) and the Asset Management Corporation of Nigeria (AMCON) have agreed to improve inter-agency cooperation in order to ensure asset quality and liquidity in the Nigerian Mortgage Banking Sector.

Speaking during a courtesy visit to AMCON, Acting Managing Director/Chief Executive Officer of FMBN, Richard Esin solicited AMCON’s cooperation for FMBN’s mandate of providing liquidity for the Nigerian Housing Sector and delivering affordable housing in the country.

He noted that mortgage banks and DFIs are not covered by AMCON’s mandate on debt recovery, he requested the Corporation’s global approach inclusive of the Bank’s interests in addressing issues with debtors to commercial banks who equally have NPLs with FMBN in order to safeguard the National Housing Fund (NHF) managed by FMBN.

The Managing Director, AMCON, Ahmed Kuru expressed confidence in the capacity of the FMBN to address the huge national housing deficit and urged the bank to adopt innovative methods as well as sound practices to mitigate risks associated with its lending activities.

He assured the bank of the corporation’s assistance to improve the quality of its loan portfolio as provided under AMCON’s enabling law.

Both FMBN and AMCON agreed to encourage closer inter-agency interaction towards addressing the challenges of economic development posed by non-performing loans in the Nigerian mortgage banking system and safeguarding national resources to meet the housing needs of Nigerians.