The new management team of the Federal Mortgage Bank of Nigeria (FMBN) has been instructed to look to the capital market to capitalize on its opportunities and increase the financial capacity of the sector.
In addition, the Mortgage Banking Association of Nigeria (MBAN), which awarded the task to FMBN, said the bank would achieve an annual revenue target of N1 trillion to help the bank and the entire housing sector to more easily achieve the objectives set.
MBAN handed over the tasks over the weekend while paying a courtesy visit to FMBN’s new Managing Director Madu Hamman and his team in Abuja, calling for more revisions to the laws governing operations in the mortgage banking sector. in Nigeria.
Speaking during the visit, Visitor Team Leader and MBAN Chairman Ebilate Mac-Yoroki also expressed the need for FMBN to automate bank operations, though he advocated for that primary mortgage banks have fair opportunities to operate.
According to Mac-Yoroki, when FMBN decides to take advantage of the opportunities he believes abound for the mortgage industry in the capital market, there will be enough funding to meet the many commitments he has on the ground, including the payment of dividends.
He demanded that the bank grant some leeway to other primary banks operating with it in the sector, in particular by removing the ambiguities surrounding the “single debtor” policy, by allowing them to take advantage of the lease with option to buy package, as well as than by giving preference to private mortgage banks to hold the mortgage funds that commercial banks currently hold.
“I’m a product of the capital market, I want to advocate that the Federal Mortgage Bank use every opportunity that we have in the capital market and we also gave you a purpose because you don’t just come as big men, work without a target.
“The government will not give you a target, but because we are private sector people, we are saying that from now on your operational target should be N1 trillion every year.
means that this year, we are already in June, we can accommodate a turnover of 500 million naira. This way we know you will have plenty of money, can pay dividends, etc.
“We also want to advocate for you to give optimal opportunities for all PMBs to operate, as much as possible, without compromising standards. If someone hasn’t committed any crimes, maybe they have a regulatory issue or two to deal with, try to help them out so we can get enough. So please we want you to know that every PMB is ready
play a role in this market tries to accommodate us.
“The other question is that in order for us to function, you also need to help us function at optimal levels. There’s this funny single debtor question that’s being raised in some quarters, we don’t know the meaning of sole debtor. Money given to PMB, they are like brokers, like me I am a stockbroker, I can have a hundred billion from someone to buy shares. If I buy, the commission belongs to me.
“We also want to say that we will work with other stakeholders to see how we can change the foreclosure law that we are in the country. Yesterday we were in the Senate, we discovered that you have a lot of competent and versatile senators, who are ready to help us review a lot of our laws in the housing sector, ”he said.
In his response, FMBN Managing Director Madu Hamman said that FMBN takes the relationship with MBAN seriously, recalling the history of the two bodies.
He however assured that the issues raised by the banking association would receive adequate attention, observing that processes had already started in some areas.
“We appreciate the relationship, the partnership, the collaboration that we have with MBAN, of course MBAN is FMBN’s main partner in the market. The coming into force of the Federal Mortgage Bank Act in 1991 gave rise to the issue of the master mortgage and FMBN assuming the supervisory role.
“So from the start, it was the two of us who were supposed to collaborate together. However, when the major mortgage banks arrived and NHF started, we noticed that there was a gap, which led to the appearance of REDAN. Thus, REDAN became the second child, but you are the first born, so we take the relationship with you seriously.
“We therefore took all the issues that were raised to heart, starting with the FMBN processes to be automated. On this point, we are happy to say that this is already underway. Basic banking software for the bank is being implemented; first module is life. We post in it is the one that affects FINCORE and cash. The next module to come is Credit and NHF, which is the main engine room for our operations. We expect that to happen before the end of June for us to start posting on that,” he said.