Stakeholders urge repeal of FMBN Act

Stakeholders in mortgage industry have called for the repeal of the existing Act establishing Federal Mortgage Bank of Nigeria (FMBN) to give room for its comprehensive re-establishment and strengthening of its board.

They also sought for the establishment of Institute of Mortgage Brokers and lenders of Nigeria (IMBLN) for the regulation of the sector’s activities to instill professionalism.

The call was made at House of Representatives Committee on Housing public hearing on a bill for an act to establish the IMBLN and a bill for an act to repeal the Federal Mortgage Bank of Nigeria Act, Cap F16, 2004 to make comprehensive provisions for the re-establishment of the FMBN and its board of directors.

The stakeholders maintained that the establishment of regulatory institute in the mortgage industry will help to instill professionalism, eliminate fraudsters, remove speculators, provide regulatory framework, entrench sanity and decency, provide training programmes for practitioners in the sector, among others.

On the repeal of existing FMBN Act and the re-enactment of an Act re-establishing and strengthening the management and board of the bank, they stressed that it will embolden the bank to carry out its functions unimpeded.

They specifically called for the recapitalisation of the FMBN from the current N5 billion to at least N1 and the inclusion of the critical stakeholders who are contributing to the National Housing Fund as members of the board.

The Managing Director of FMBN, Ahmed Musa Dangiwa, said the establishment of Institute of Mortgage Brokers and Lenders of Nigeria will provide standards and make estate business a career.

Apart from FMBN’s support to the repeal of its present Act establishing it, he proposed that the share capital of the bank should be increased to N500 billion to improve its liquidity.

According to him, the bank should be wholly owned by the Federal Government, adding that the Central Bank of Nigeria and Nigeria Social Insurance Trust Fund should not be shareholders of the bank as they cannot be playing the role of regulator and owner at the same time.

“To be able to play its role of providing affordable housing finance at single digit interest to Nigerians, particularly the low and middle income earners in Nigeria, FMBN should remain as a government corporation and should continue to manage the National Housing Fund”, he said.

Also, the Managing Director of Federal Housing Authority (FHA), Mohammed Al-Amin, while supporting the establishment of a regulatory institute for the mortgage sector, said the Bill re-establishing FMBN should enhance its liquidity, remove unnecessary interventions from the Ministry of Finance, eliminate incident of having another agency carrying out the function of the FMBN or assigned to manage the National Housing Fund because it will create administrative bottlenecks.

Other stakeholders who also made presentations in support of establishing a regulatory institute in the mortgage sector and strengthening FMBN include the Nigeria Labour Congress, Trade Union Congress, Real Estate Developers Association of Nigeria, Council of Registered Builders, Nigeria Institute of Estate Surveyors and Valuers, Federal Government Staff Housing Board, Council of Registered Builders of Nigeria, among others.