E-Financial
FMBN Extends Loans to NHF Contributors
The Federal Government has assured the Federal Mortgage Bank of Nigeria (FMBN) of legislative amendments of relevant housing industry laws that will pave the way for its recapitalisation to N500 billion to enable the bank carry out its cardinal objectives.
The bank for a long time has not been able to carry out its constitutional duties of giving loan facilities to contributors of the National Housing Fund.
These laws, according to the Federal Government, include the National Housing Fund (NHF) Act, 1992 and FMBN Establishment Act, 1993 which raises hope for the housing sector as expectation is that more people, especially those who are contributors to the National Housing Fund (NHF), will get housing loan that will enable them to either buy or build their own homes.
Accordingly, it will impact the economy as more home owners will lead to increased productivity and economic activities that will create jobs for both skilled and unskilled labour in the housing sector.
Giving the Federal Government’s perspective on this recently at FMBN Management Retreat held in Abuja with the theme, ‘Transformational Innovation for Sustainable Development in Uncertain Times’ the Minister of Housing and Urban Development, Ahmed Dangiwa who was the immediate past Managing Director and Chief Executive Officer of the apex bank, promised to ensure that FMBN gets all the necessary support at the highest levels possible to deliver maximally and optimally on its mandate to Nigerians.
“As minister, I am committed to being a way-maker, facilitator and catalyst to the evolution of the bank as a modern, impactful and resilient housing finance institution that delivers on the maxim that ‘everyone deserves a home,’ the Minister said.
He noted that FMBN must be seen as a tool of service to Nigerians, tasking the staff to see their jobs and the salaries that they are paid as recompense for the services that they offer to Nigerians. “We must ensure that we offer quality customer service to Nigerians which is very important,” he said.
He charged the bank to deliver on the Federal Government’s expectations and the needs of Nigerians for affordable housing, adding that what this means is that FMBN must transform, innovate and lead a new era of massive housing development and delivery even in these difficult times of high construction costs and lower incomes.
“This requires a radically new mindset, thinking out of the box and identifying the oppourtunities that these challenges present,” he said.
Dangiwa revealed that a lot of work has been done on the review of the NHF Act and FMBN Establishment Act as they have achieved successful passage by the two chambers of the National Assembly, but presidential assent was declined.
He added that the current efforts must specifically identify the reasons for the rejection, so that appropriate steps are taken to address the concerns of the relevant stakeholders.
He urged FMBN to make greater efforts towards reducing its non-performing loan portfolio and clearance of backlog of its audited accounts, saying, “A major step in this regard is to ensure efficient processing and approval of corresponding NHF loans for all completed projects, as well as to ensure effective off-take and inter-account settlement to clean up the bank’s books,” he said.
Based on the Federal Government’s goal to create a $1trillion economy within the next 10 years, Dangiwa said the trajectory in the housing sector must move towards putting a large chunk of the goal on the table.
“In this direction, we must deliberately seek to continually increase the real estate sector contribution to the Gross Domestic Product (GDP) to fulfil its projected role as the bedrock of economic growth and wealth creation,” he added.
Tope Fasua, Special Assistant to the President on Economic Affairs, who was Guest Speaker at the retreat, said the country had potential for $200 billion investment in housing, attracting foreign investments and growing the economy by double digits.
Fasua noted that the big challenge in the sector has been the growing size of dead capital in the country which, according to him, is worth over $900 billion, adding that with artificial intelligence, all land globally will be documented and optimised.
Madu Hamman, FMBN’s managing director, said the institution has been providing mortgage finance and facilitating home ownership for low and medium-income earners through its various schemes and products. He noted, however, that these efforts are not enough to meet the growing demand for shelter and expectations of the Nigerian people.
“The housing sector has faced a severe shortage of and corresponding high cost of building materials that has negatively impacted the delivery of affordable housing in the country,” he said, adding, “these factors demand that we rethink our strategies, policies, and processes to ensure quality, affordable, and sustainable housing for Nigerians.”
Depositors of Heritage Bank with deposits exceeding N5 million have appealed to the National Assembly to intervene and assist in the resolution of the bank’s license by the Central Bank of Nigeria (CBN).
The depositors claimed that the revocation has left them in financial distress, with their livelihoods and businesses hanging in the balance.
In a statement, the depositors expressed frustration that despite previous assurances from the CBN that the bank was not in distress, they have been unable to access their funds.
The situation, according to them, has led to widespread economic hardship with businesses shutting down, life savings crumbling, and daily expenses coming to a standstill.
The statement reads, “Some depositors have died from heart attacks, while others are hospitalized. We are at a loss, and our families are suffering.
“We are perplexed by the action exhibited by the CBN after Unity Bank merged with Providus Bank, which ensured a smooth transition of depositors. We are aware that First Bank was paid N460b of its deposits in Heritage Bank before its liquidation. Why should we be treated differently, subjected to an everlasting process to recover our funds from the sale of Heritage Bank’s properties?
“We plead that you intervene by advising CBN to pay all depositors in full without further delay. Advise that a few other banks absorb the depositors while ensuring a smooth transition as was done in the case of Unity Bank and Providus Bank.
“Utilize Heritage Bank’s reserve ratio to settle depositor’s claims. Treat depositors equally as was done with First Bank and verify NDIC’s claim of paying the insured sum to 85% of depositors and ensure prompt payment to all eligible depositors.”
Zumax Nigeria Limited, an oil services company, has filed a N4.1 billion lawsuit against the Central Bank of Nigeria (CBN), alleging gross negligence and complicity in what it calls a fraudulent receivership imposed by the apex bank.
In the case, which is before the Federal High Court, Lagos, Zumax claimed that the CBN failed in its statutory duty to supervise banks and protect customers’ interests.
At the hearing of the matter on Tuesday before Justice Akintoye Aluko, Chief Wole Olanipekun (SAN) told the court that the Plaintiff (Zumax) had an application dated February 20, 2025, asking the court to hear the application.
He urged the court to allow him to move the application as the defendant had responded.
Olanipekun also told the court that the Plaintiff and defendant’s preliminary objections can be consolidated and heard together.
He stated that the priority of which application to be heard first shouldn’t arise as the Plaintiff has not opposed the hearing of CBN’s preliminary objection.
But Adeleke Agboola (SAN), counsel, counsel, told the court that the defendant has a preliminary objection in the suit, which commenced as a writ of summons challenging the jurisdiction of the court.
He argued that CBN filed its notice of preliminary objection within time and that the Plaintiff has responded to it.
Agboola said: “This preliminary objection has priority over any other applications. The Plaintiff’s application is not meritorious.
“There is no suggestion by the claimant that we did not file within time. We are saying that this court does not have the jurisdiction to hear this matter. I urge your lordship to allow us to argue this matter.
“There is no doubt that preliminary objection takes precedence; it says it must be heard first, and determining our objection is very serious; we have complied strictly by the rules.
“We urge this court to hear the preliminary objection and dismiss the Plaintiff’s application.”
In his response, Olanipekun said: “My learned friend said the application we filed is not meritorious. It is the court that can make any pronouncement on that.
“My lord, even when we talk of being tidy, we are not saying the court should not hear his preliminary objection. He is now the one saying that our application should not be heard.
“The court has to determine whether the objection has to be heard first or the Plaintiff’s application dated February 20, 2025, has to be heard first.
“It’s no longer the law; in fact, it has never been the law that when there is a preliminary objection, the court will say let’s take it first. We urge your lordship to take our application that has not been contested by the defendant.”
After listening to the submissions and arguments of both parties, Justice Aluko adjourned the case till April 22, 2025, for ruling on which application to hear first.
According to court documents, Zumax had and maintained its account with the defunct IMB International Bank Plc., which, under several mergers and consolidations of banks, ultimately fused into the much larger banking institution known as First City Monument Bank (FCMB).
The Plaintiff said it obtained a facility from IMB International Bank, an overdraft facility of N50m, which was later increased to N200m in/or at the first half of 1998.
However, the bank allegedly inflated the company’s debt and, by December 6, 2002, claimed it had risen to N465.6 million, the claim which was vehemently disputed by Zumax.
Zumax contends that FCMB, under its former Managing Director Edwin Chinye, took control of its foreign currency earnings held in a JP Morgan Bank account through its sister company, Redsear Limited.
According to the plaintiff, the Bank’s Managing Director not only insisted upon and got shares in Redsears Limited and a directorship of that company as a condition precedent for the loan, he also allegedly inserted himself as the lone signatory for the company’s bank account with JP Morgan Bank.
The plaintiff further alleged that “the bank misappropriated $ 4 million from this account, a shortfall discovered during an audit.
“Rather than addressing the dispute, FCMB appointed receivers to take over Zumax’s operations, a move the company described as fraudulent.
“The receivership, which lasted from December 2002 until 2022, led to severe financial losses, including the collapse of Zumax’s business and the loss of contracts with multinational oil companies such as Chevron.
“The company claimed it was unable to operate for two decades due to the receivership, which was based on what it describes as an entirely fabricated debt.
“Zumax further alleged that despite repeated petitions, the CBN failed to investigate FCMB’s actions or intervene to prevent the alleged financial mismanagement.
“The company maintained that a 2007 CBN report confirmed that it had paid over N547 million to FCMB, proving it was never in debt to the bank.
“Additionally, the Court of Appeal ruled in December 2021 that the consent judgment upon which the receivership was based was fraudulent and should be set aside.”
The plaintiff is seeking a court declaration that the CBN was negligent in its duty to regulate Nigerian banks.
It’s also asking for special damages amounting to $ 41 million, including lost income and asset depreciation; general damages of N2 billion, exemplary damages of N2 billion, and legal costs amounting to N100 million.
But the CBN’s preliminary objection is challenging the jurisdiction of the Court to hear the matter.
Efforts to harmonise fiscal data across government institutions have commenced in earnest, with Mr Wale Edun, minister of Finance and Coordinating Minister of the Economy, spearheading the meeting to achieve the mission.
Mr Wale Edun, minister of Finance and Coordinating Minister of the Economy,
Key stakeholders, including the Minister of State for Finance, Dr Doris Uzoka-Anite; the Accountant General of the Federation, Shamsedeen Babatunde Ogunjimi, and the Director General of the Budget Office, Mr Tanimu Yakubu, met on Monday with Edun, a statement issued by Director of Information in the ministry Mohammed Manga, said.
The said discussions centered on discrepancies in fiscal data across government institutions, which have affected Nigeria’s credit ratings and borrowing capacity.
The Minister emphasised the need for synergy between agencies such as the Budget Office, the Accountant General’s Office, and the Debt Management Office (DMO).
“Delivering accurate and comprehensive fiscal data is critical to economic stability and investor confidence,” Edun said Attendees agreed on the establishment of a Fiscal Data Coordination Framework, which includes a main committee, a subcommittee, and technical teams dedicated to standardising fiscal reporting methodologies and economic assumptions.
The Minister affirmed that Nigeria must take ownership of its fiscal data credibility, reducing dependence on external institutions.
The meeting concluded with a firm commitment to implementing the framework, reinforcing transparency, strengthening investor confidence, and enhancing Nigeria’s economic outlook.
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