The Federal Government has inaugurated the members of the Joint Technical Committee (JTC) for the full commercialisation and recapitalization of the Federal Mortgage Bank of Nigeria (FMBN) for optimum performance.
Inaugurating the 8- member committee; comprising four members each from the Bureau of Public Enterprises (BPE) and the Federal Mortgage Bank of Nigeria (FMBN), Director General of the Bureau of Public Enterprises (BPE), Mr. Alex A. Okoh said efforts to reposition the bank are to bridge the country’s huge housing deficit estimated at 22Million as at 2019.
He said the Terms of Reference (TOR) for the Committee will include among others. To conduct 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; To harmonise and synchronize all the reform processes of the FMBN with the on-going reform of the Housing sector.
Other terms of reference are 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; and 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 recalled that the Bureau, in pursuance of its mandate for the reform of government-owned enterprises met with the Management team of FMBN on February 18, 2021 where robust discussions on the BPE’s proposed plan for the commercialisation of FMBN in line with its 2021 workplan and as approved by the National Council on Privatisation(NCP) were discussed.
He said, “Interestingly, the proposal is in tandem 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”.
According to him, the Joint Technical Committee is an offshoot of the meeting, aimed at preparing the bank for commercialisation and re-capitalisation by reviewing the 5- year strategic plan with the view of embedding it within the overall reform plan of the Bureau for FMBN.
He said the assignment is of a critical national importance and charged the members to approach it with the highest sense of responsibility.
The task is to be concluded within 60 days.
Also speaking, the Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Mr. Ahmed Musa Dangiwa said that the inauguration of the Joint Technical Committee has further consolidated the relationship between the Bureau of Public Enterprises (BPE) and the FMBN.
While pledging support to the Commcercialisation and Recapiatlisatioin process, the MD was optimistic that the new initiative would address the huge housing deficit in the country.