N150bn allocation to MOFI misplaced – Ex-REDAN boss

Former President of Real Estate Developers Association of Nigeria (REDAN), Alhaji Aliyu Oroji Wamakko, has expressed reservation over the allocation of N150 billion to the Ministry of Finance Incorporated (MOFI) real estate investment fund while the Federal Mortgage Bank of Nigeria (FMBN) remained grossly underfunded.  

In a statement Monday commending Senate’s retreat in Lagos to address Nigeria’s housing deficit, the ex-REDAN boss noted that the Federal Mortgage Bank currently operates on a capital base of just N2.5 billion.

Wamakko stated that the amount was woefully inadequate for an institution tasked with providing mortgages in a country with a housing deficit exceeding 37 million units. 

The statement reads, “I commend the ongoing discourse surrounding the federal government’s efforts to address Nigeria’s housing deficit, as highlighted during the recent Senate retreat in Lagos. 

“However, I must express my deep concern over the allocation of N150 billion to the Ministry of Finance Incorporated (MOFI) real estate investment fund, while critical institutions like the Federal Mortgage Bank of Nigeria (FMBN) remains grossly underfunded.  

“The Federal Mortgage Bank currently operates on a capital base of just N2.5 billion-an amount woefully inadequate for an institution tasked with providing mortgages in a country with a housing deficit exceeding 37 million units. 

“The FMBN relies heavily on the 2.5% contributions from workers under the National Housing Fund (NHF), a model that is neither sustainable nor sufficient to meet its operational needs. 

“From maintaining nationwide offices to powering generators, purchasing vehicles, and managing basic supplies, the bank is stretched thin, yet it is expected to deliver affordable housing and mortgages. This is simply not feasible under the present circumstances. 

“If the federal government is advancing its Renewed Hope Housing Initiative, it must prioritise the recapitalisation of the FMBN.”