The efforts of the Federal Government of Nigeria to reform the Federal Mortgage Bank of Nigeria (FMBN) for optimum performance has received a boost with the inauguration of members of the Joint Technical Committee (JTC) for the full commercialization and recapitalization of the Bank.
Inaugurating the 8-member committee comprising four members each from the Bureau of Public Enterprises (BPE) and the Federal Mortgage Bank of Nigeria (FMBN), Director-General of the Bureau of Public Enterprises (BPE), Mr Alex A. Okoh, said efforts to reposition the bank are to bridge the country’s huge housing deficit estimated at 22million as at 2019.
He said the Terms of Reference (TOR) for the Committee will include, among others, “to conduct a diagnostic review of the Bank’s existing institutional framework, organizational structures and operational modality; review and harmonize all existing policies, law and regulations governing mortgage banking in Nigeria in order to identify areas that would facilitate the implementation of full commercialization and recapitalization of the FMB; harmonize and synchronize all the reform processes of the FMBN with the ongoing reform of the Housing sector; to develop strategies on how to reform the FMBN that would enable it to raise funds from the money and/or capital markets without government guarantees; and to undertake review of the legal, institutional and operational frameworks of mortgage banking in a few African countries and other emerging economies with a view to learning from their key success factors (KSFs) that can be replicated.”
He recalled that the Bureau, in pursuance of its mandate for the reform of government-owned enterprises, met with the Management team of the FMBN on February 18, 2021 where robust discussions on the BPE’s proposed plan for the commercialization of the FMBN in line with its 2021 work plan and as approved by the National Council on Privatization (NCP) were discussed.
“Interestingly, the proposal is in tandem with the ongoing efforts of the FMBN’s Management to reposition the Bank for optimum performance as articulated in the 5-year strategic plan developed by the Bank,” he stated.
According to him, it was after this that it was resolved that a joint Technical Committee be constituted to prepare the bank for commercialization and re-capitalization by reviewing the 5-year strategic plan with a view to embedding it within the overall reform plan of the Bureau for the FMBN.
Okoh noted that the members were chosen in recognition of their wealth of knowledge and expertise in the reform project and was hopeful that the outcome of their assignment will pave way for the FMBN’s transformation into a viable entity that will assume a pivotal role in the housing sector value chain.
He said the assignment is of critical national importance and charged the members to approach it with the highest sense of responsibility. The task is to be concluded within 60 days.
Also speaking, the Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Mr. Ahmed Musa Dangiwa, noted that the inauguration of the Joint Technical Committee has further consolidated the relationship between the Bureau of Public Enterprises (BPE) and the FMBN.
While pledging support to the Commercialization and Recapitalization process, the MD was optimistic that the new initiative would address the housing deficit in the country.
Amaka E. Nliam
