The Real Estate Developers Association of Nigeria (REDAN) has suggested that the recapitalisation of Federal Mortgage Bank of Nigeria (FMBN) would bolster economic recovery and ease the present pitfalls caused by COVID -19 pandemic in the country.
President of REDAN, Alhaji Aliyu Oroji Wammako who disclosed this to newsmen in Abuja yesterday, pointed out that enacting the right policy frame work is essential, as it would stimulate the construction of more houses and boost employment opportunities for jobless youths in the country.
Recall that President Muhammadu Buhari had in his 2020 Democracy Day speech, stated that his administration`s pursuit of affordable housing for the low-and middle-income earners led to the delivery of 1,200 housing units, provision of 520 service plots with infrastructure through a Public Private Sector partnership as well as issuance of 868 mortgages, totaling N7.7 billion.
Buhari added that the Home Renovation Loans (HRLs) totaling about N16.2 billion was granted to 19,210 persons contributing to the National Housing Fund (NHF).
Wammako however suggested that the panacea to housing shortage in the country remains the recapitalization of FMBN, saying that FMBN has built over 1000 houses in the six geo-political zones.
He was optimistic that the recapitalization would enable the apex mortgage bank to improve on its statutory mandate of providing the needed mortgages at a single digit interest rate for the construction of affordable housing.
According to him, “REDAN is willing to turn the COVID- 19 pandemic from tragedy to opportunity because we are sure of creating employment and empowerment of youths through the housing and construction sector. As a developer, if you are building one house, you will find out that you will be creating more than 25 jobs, excluding hawkers and food vendors at the site”
Wammako hinted that for Nigeria to witness rapid progress, that there is a need for the Central Bank of Nigeria (CBN) to increase the micro- economic indices by creating employment at the local level especially through the housing sector.