The Federal Mortgage Bank of Nigeria has stated its commitment to addressing challenges facing the mortgage industry in the country.
The FMBN Managing Director, Madu Hamman, stated this during a Q1 Mortgage Sector Virtual Forum, organised by the Central Bank of Nigeria (CBN) Financial System Strategy, tagged “Navigating Current Challenges in the Nigerian Mortgage Market”.
In his remarks, Hamman acknowledged that the cost of borrowing within the mortgage sector was one of the biggest challenges facing the industry.
According to a statement signed by the Group Head of Corporate Communications, Timan Elayo, the MD explained that the inflationary trend in the economy had resulted in higher costs of building materials, which, in turn, had led to higher prices of properties and housing across the board. This, he said, had affected affordability levels across all mortgage institutions.
He noted that the National Housing Fund Scheme, which the FMBN manages, was fixed at a single-digit interest rate and allows contributors to access mortgage loans.