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FMBN Reads Riot Act To Developers In Ondo Over Gross Disregard



Leadership Nigeria News Today

Developers In Ondo  Over Gross Disregard

       By        Tope Fayehun,  

The Federal Mortgage Bank of Nigeria (FMBN) Thursday warned developers under its scheme to adhere strictly to their terms of engagement, saying disregarding their directives will attract sanctions.

The FMBN Managing Director, Mr. Ahmed Dangiwa who gave the order in Akure,  Ondo State capital, during his inspection to the institution’s estates in the state ordered its  developers in Ondo state to sack non -subscribers occupying buildings in its estates across the state.


Dangiwa who led the management of the bank on inspection tour, warned the developers to adhere to his instruction or face the wrath of the institution.


Dangiwa’s team visited the Rabatel Estate on Akure-Owo Road, Afro Stuff Estate, HOB Estate behind Federal Secretariat and Alpha 3D Estate on Irese Road all in Akure, the state capital.


The managing director who expressed disappointment with the attitude of the developers said rather than giving the houses to offtakers, they rent them out to tenants and collect rents.


He noted that their actions were to the detriment of the Federal Government’s purpose of the project.   According to him, the affected developers would be made to pay all the monies collected from tenants or risked revocation of the estate development contract.


His words: “As a developer, once you complete an estate, you are suppose to hand it over to the offtakers who will mortgage it. Most of the developer after completing the estate they will prefer renting the estate and start collecting money. That is wrong and that is why we have to summon both the developer that are overseeing the mortgaging of this houses.


“There will be punishment for them. They have to pay back the money they have collected because it is not meant for them. They have to start getting the offtakers to mortgage the estate”.


While expressing disappointment at the sharp differences between the amount disbursed and the level of work done, Dangiwa said, the bank has summoned the concerned developers.


He said ,”There are issues of non performance and ,that is why we have to summon some developers. The money that has been disbursed to them is not commensurate with the work on ground as to which most of this developers are facing and we have to address it immediately.


“The threatening to take over the estate is to the fact that some of the houses are completed but they prefer to leased out as a rent than mortgage it.



“That is why we threatened to take over it even from the primary institution that suppose to mortgage this houses. We’ve summoned both the developer and the primary mortgage institution to our office for explanations”.


Dangiwa, who also led the team on a courtesy call to the State Governor, Mr Oluwarotimi Akeredolu SAN,  said the state workers have a lot to benefit by subscribing to the National Housing Fund (NHF).


According to him, “The workers in the state have to key immediately into the NHF to enjoy the benefits. We have visited the governor so that the workers can key into the mortgage plan immediately.



“State Government workers are losing benefits of subscribing to NHF.  We have about 700 houses that ready for offtake but no offtakers because the state is not in NHF contribution scheme”.



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