THE Federal Mortgage Bank of Nigeria (FMBN) will adopt drastic and proactive measures for the recovery of multi-billion naira loans at the hands of Estate Developers and some Primary Mortgage Institutions in the country, as well as improve the FMBN's loan portfolio and ensure best practices in loan appraisal for new loan applications.
Chairman Board of FMBN, Bisi Ogunjobi, who disclosed this at the weekend in Abuja, said that the bank is currently reviewing the Estate Development Loan (EDL) window to remove all loopholes and enhance the National Housing Fund (NHF) operations.
He said: "A lot of our clients either the PMI's or Estate Developers are owing this institution. It is important that they honour their obligations. We will embark on aggressive recovery of these loans. We will also implement very effective human resource management on our loans to be able to enforce discipline and transparency."
Ogunjobi who stressed the need to adopt more robust and extensive reform measures to reposition FMBN in meeting its mandate, pointed out that the principles of professionalism, integrity and transparency must guide the bank's operations.
According to him, the NHF collection would be reviewed to ensure collection, reform and better activities with the PMI's and Estate Developers.
He stated that e-card would soon be issued to all contributors to the NHF to enable them know the amount they have in their accounts, adding that contributors who were unable to secure loans before their retirement would get their money back with interest paid.
The chairman, who said that the Central Bank of Nigeria (CBN) has given the PMI's up till December 2013 to recapitalise, explained that the Regional/State PMI's are to recapitalise to the tune of N2.5b while PMI's with national spread are to recapitalise to the tune of N5b.
