Jos – Federal Mortgage Bank of Nigeria (FMBN), has commenced the disbursement of N113 million home renovation loans to 120 civil servants in Plateau.
The News Agency of Nigeria (NAN) reports that Mr Ayobala Abiola, FMBN Executive Director, Business Development and Treasury Services, issued 10 cheques of N1 million each, to 10 beneficiaries, to flag-off the exercise on Wednesday, in Jos.
Abiola said that the home renovation loan was one of the measures adopted by by FMBN to ease workers’ access to the National Housing Fund (NHF), into which they contribute 2.5 per cent of their basic salary.
“The window affords Nigerians, who are contributors to the NHF, an opportunity to access mortgage loans to renovate or improve existing properties.
“Compared to regular mortgage, the requirements for this loan have been made simple.
“All that is required is the signing of a memorandum of understanding and the execution of letters of undertaking by various state governments for the deduction and remittance of loan repayments to the bank.
“In addition, only two guarantors are required from the applicants,” he explained.
He commended the Plateau Government’s cooperation that ensured the speedy approval of the loan for the first set of beneficiaries, and expressed readiness to work with the state to provide affordable housing for its people.
Gov. Simon Lalong, in his remarks, expressed disappointment that the NHF, which was established in 1992, had yet to address the challenge of affordable housing in Nigeria.
“Nigeria has a housing deficit of 17 million, according to the Centre for Affordable Housing Finance in Africa.
“Government must mobilize resources and explore credible alternatives that will accelerate housing delivery to the medium and low income group,” he said.
The governor described the renovation loan scheme as a welcome initiative that would guarantee qualitative houses within the targeted group.
He said that government had reduced the processing fees for land titles by 50 per cent to encourage people to build houses, adding that the processes had been made easy and could be completed in less than one month.
Mr Jibrin Bancir, Chairman of the Plateau chapter of the Nigeria Labour Congress, in his remarks, thanked the FMBN for the gesture, and declared that it would spur workers’ commitment to service delivery.
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