The Federal Mortgage Bank of Nigeria (FMBN) has recapitalised its equity contributions of National Housing Fund (NHF) loans to N5 million and below in a bid to improve mortgage affordability.

With the reduction in equity contributions, the bank has reduced the actual cost to about 20 percent, implying that contributors of N5 million and above would make equity contribution of 30 percent only.

This is aimed at facilitating ease of acquiring houses through equity contributions to the NHF loans by intending individuals.

The Managing Director of FMBN, Ahmed Dangiwa, made this disclosure while directing the staff of National Health Insurance Scheme (NHIS) to apply for National Housing Fund (NHF) mortgage at an affordable interest rate of six percent to enable them own their own houses. 

Dangiwa spoke while receiving the Executive Secretary of NHIS, Prof Usman Yusuf who led his other top management team on a courtesy visit to FMBN headquarters, Abuja. 

He explained that apart from the NHF window, FMBN has similar initiatives like Home renovation loan, Cooperative loan and Rent-to-own that would help in resolving the housing challenges in Nigeria.

He requested for data of the organisations contributing to NHF, adding that it would assist in identifying organisations that are not complying with the equity contributions to NHF. 

He expressed satisfaction that NHIS is up- to- date in their contribution, describing it as an indication of the commitment of the management of NHIS to staff welfare. 

“In the same vein, the management of FMBN is committed to promoting the interest of the staff particularly in the area of health and for this reason, the bank has ensured that is up- to- date in its remittance to NHIS”,he assured.

He regretted that despite staff contributions to NHIS through the cooperatives that it was difficult to access the funds and tasked NHIS management to resolve the issues bordering on staff contributions. 

The Executive Secretary of NHIS, Prof Usman Yusuf had earlier explained that the essence of the courtesy visit was to find ways of acquiring mortgage for his staff, who had been pressurising him on how NHIS could help them own houses since they have robust contributory scheme through the cooperative. 

Yusuf noted that FMBN is one of the organizations that are up-to-date in NHIS contributions and assured that he would do better than in the past in protecting the interest of the staff.

“My going round is to build trust and we are telling people to trust NHIS again, so we want to hear any complain you have with your Health Maintenance Organizations (HMOs) and the hospitals that your staff go to so that we can do better”, he said.