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FG to inject N500bn into mortgage bank to tackle housing deficit

By NAN   |   20 February 2017   |   2:57 pm  

Federal Mortgage Bank

The Federal Government says it will inject N500 billion into the Federal Mortgage Bank to enable it meet the housing needs of Nigerians.

Minister of State for Power, Works and Housing, Alhaji Mustapha Baba, who disclosed this on Monday in Jalingo, said that the measure would help the bank to adequately cater for the rising mortgage finance needs of workers.

Baba spoke while inaugurating the ministerial pilot housing scheme project, financed by the Federal Mortgage Bank in the Taraba capital.

He commended the bank’s efforts toward meeting the challenge of housing deficit, in spite of the economic challenges facing the nation.

The minister urged workers to continue to contribute to the housing fund, adding that government would soon commence the construction of 5,000 housing units in each state of the federation, under the public-private partnership arrangement.

Gov. Darius Ishaku, in his remarks, said that the inauguration would reduce the housing needs of civil servants in Taraba.

Represented by his deputy, Alhaji Haruna Manu, Ishaku thanked the contractor for delivering a quality job.

He said that the state government was interested in working with the federal mortgage bank and the federal ministry of power, works and housing, toward building more houses for the people of the state.

“We are equally doing our best to meet the housing needs of the fast growing population, following the relocation of some people into the state, as a result of insurgency in some northeastern states.

“The state government has already acquired land to build 500 housing units in partnership with some development partners,” he said.

Earlier, National President of the Trade Union Congress (TUC), Mr Boboi Kaigama, had called on the state government to subsidise the cost of the houses for its workers.

He explained that civil servants could hardly afford the N7million pegged for a 3 bedroom semi-detached bungalow.

Kaigama also called on the federal ministry of power, works and housing to consider local government workers in the housing scheme of the federal government, so as to give them a sense of belonging.

The News Agency of Nigeria (NAN) reports that the inaugurated 202 housing estates has 24 one-bedroom Terrace going for N3.2m, 88 two-bedroom Bungalows at N5.6m, and 90 three-bedroom bungalows at N7million.



  • real

    you would not be able to solve the housing problem, until Nigeria develop an effective mortgage financing market. The core part of an effective mortgage financing market is the government entity that would be able to provide liquidity for the mortgage market. This entity would be the ones purchasing mortgages from financial agencies or companies and reselling them as mortgage security at the capital market. once there is an effective injection of funds into the sector, developer would be able to generate the funds needed to effectively reduce the housing problem.

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