TheCable

The federal government has inaugurated a joint technical committee to oversee the commercialisation and recapitalisation of the Federal Mortgage Bank of Nigeria (FMBN).

Amina Tukur Othman, head of public communication at the Bureau of Public Enterprises (BPE), made this known in a statement, on Thursday.

She said the committee comprising four members each from the BPE and FMBN was inaugurated on Wednesday.

Alex Okoh, director-general of the BPE, said efforts to reposition the bank are on to bridge the country’s huge housing deficit estimated at N22 million as at 2019.

He identified the terms of reference for the committee to include conducting “a diagnostic review of the bank’s existing institutional framework, organisational structures and operational modality.”

“To review and harmonise 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 FMBN,” the statement read.

“To harmonise and synchronize all the reform processes of the FMBN with the on-going reform of the housing sector.

“To develop strategies on how to reform FMBN that would enable it to raise funds from the money and/or capital markets without government guarantees.

“To undertake review of the legal, institutional and operational frameworks of mortgage banking in a few African counties and other emerging economies with a view to learning from their key success factors (KSFs) that can be replicated.”

Okoh said the BPE had met with the management team of FMBN on February 18, where robust discussions on the BPE’s proposed plan for the commercialisation of FMBN were discussed.

He said the proposal is in line 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.

Okoh noted that the members were chosen in recognition of their wealth of knowledge and expertise in the reform project and expressed hope that the outcome of their assignment will pave way for the transformation of FMBN.

He said the assignment is to be concluded within 60 days.

In his remarks, Ahmed Musa Dangiwa, the managing director of FMBN, said the inauguration exercise has further consolidated the relationship between the BPE and FMBN.

Dangiwa pledged support to the commercialisation and recapitalisation process, adding that he is optimistic that the new initiative would address the housing deficit in the country.