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REDAN urges FG to redeem guarantee on housing fund


Safe Court Estate, Lekki. Image sourcenigeriapropertycentre

Safe Court Estate, Lekki. Image sourcenigeriapropertycentre

AS controversy is raging over the directive from the authorities that the Federal Mortgage bank of Nigeria (FMBN) should sell off its assets to redeem the guarantee, the President of the Real Estate Developers Association of Nigeria (REDAN) Rev. Ugo Chime, has urged the Federal Government to meet its obligation of N24.564 billion to Note holders.

Chime who stated this last week, said passing the buck to FMBN at this stage would not augur well for the country. According to him, the Federal Government to honour its guarantee on the bond to avoid lack of confidence by investors in Government Bonds both local and sovereign Bond and avoid downward rating by both local and international rating Agencies.

He also posits that the government should get its acts together; make sure it stands up to this challenge and also go further to inject more funds into the FMBN and even restructure it if they so deem fit.

He said “On this bond issue, we need to look at some aspects. Where is the money? Was it injected into the NHF? This money should have been used as seed fund to assist the Federal Mortgage Bank of Nigeria (FMBN) to make houses more affordable.

“I don’t think that at a time when the government should be thinking of beefing up the capital base of FMBN it should be asking the bank to sell off its assets. It is gross dereliction of duty to the masses. This entire controversy is a distraction at this moment. Gaovernment should

“The Federal Government should pay the money that is due in a few days as this date has not come to them as a surprise. There are no assets for the FMBN to sell off to be able to meet the deadline, even if there were how many days will it take to do so and meet up with the deadline?”

REDAN President said the government has used privatisation to remove safety nets from the common man and describes the bond controversy as another attempt to further make the common man suffer more. “People are contributing 2.5 per cent to the National Housing Fund and over 90 per cent of these people cannot access the NHF loans due to poor funding by the same government. Government should live up to its responsibility as far as this bond issue is concerned”.

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