The Federal Mortgage Bank of Nigeria (FMBN) has expressed willingness to support the Kebbi State University of Science and Technology (KSUST) efforts to provide affordable housing to staff.
The Managing Director/Chief Executive of FMBN, Mr. Madu Hamman, stated this when he hosted a delegation led by the University’s Vice Chancellor, Professor Bala Aliero, at the Bank’s head office in Abuja recently.
Mr. Hamman said the enhanced collaboration with the university would help staff who are registered contributors to the National Housing Fund (NHF) Scheme leverage FMBN’s robust portfolio of affordable housing products to own their homes. This includes the Cooperative Housing Development Loan (CHDL), which enables organized groups with land to develop houses for members. Under the CHDL, FMBN provides housing construction financing to reputable developers at a 10% interest rate with payment periods of up to 24 months. On project completion, the Bank gives home loans to profiled beneficiaries to enable them off-take the homes.
The FMBN MD/CE added that university staff, as individual contributors to the NHF Scheme, take advantage of FMBN’s NHF Mortgage and Individual Construction loans. The two products, he said, would enable them to access up to N15million to own an FMBN-funded property or build on land they own, respectively.
He further listed the FMBN Rent-To-Own Housing Scheme, which would allow university staff to move into completed FMBN-funded properties in Kebbi as tenants and conveniently pay towards ownership of the property in monthly or annual installments over as long as 30 years at an interest rate of 7%. For staff with homes, he said they could leverage the home renovation loan, which provides up to N1million to carry out improvements.
In his remarks, the Vice Chancellor of KSUST, Professor Aliero, thanked the FMBN Management for the audience and willingness to support the university’s staff housing plan. He urged FMBN, a leading housing development finance institution, to also explore possible ways to help the university tackle the shortage of student hostel accommodation.