The President, Real Estate Developers Association of Nigeria, Dr Aliyu Wammako, has called for the urgent recapitalisation and streamlining of the Federal Mortgage Bank of Nigeria.
Wammako made the call at his investiture as the fourth president of REDAN in Abuja.
He said the FMBN had a low capital in the area of N5bn with other institutions pegging at about N8bn, according to the Central Bank of Nigeria’s indices, adding that its inadequacy had made the provision of more homes a herculean task for real estate developers.
Wamakko said the Federal Government should look into the challenges of housing development and the underlying responsibilities of the FMBN in providing affordable houses for Nigerians.
He said the FMBN was important in housing provision, especially as the cost of building materials had increased and the purchasing power of real estate developers were diminishing.
According to him, real estate contributes about 6.4 per cent of the Gross Domestic Product of the country, adding that it is important to consider recapitalisation and streamlining the FMBN for the development of the housing industry.
He commended the FMBN for having the lowest interest rate of six per cent on mortgage, and advocated for cheaper mortgage rates that would further create jobs and provide more affordable houses in the country.
Wammako, who is also the Chief Executive Officer, Jedo Investment Company, said he planned to consolidate on REDAN’s achievements in the areas of data collation on real estate management, endorsement of estates, capacity building for developers, and building of new REDAN secretariat among others.
He stated that one of his administration’s top priorities would be to collaborate with all the relevant stakeholders to ensure that Nigerians were provided with opportunities to acquire houses at affordable rates.
According to him, greater attention will be given to members’ benefits and assistance and continued advocacy on increased membership as well as capacity development.
Wammako challenged stakeholders in the business of providing affordable homes to prove their worth and togetherness.
He called on all relevant organisations, corporate bodies and individuals to key into the association’s task of providing shelter and related solutions to Nigerians.