The Nigeria Deposit Insurance Corporation (NDIC) is currently working on a framework that would enable it offer financial assistance to deserving primary mortgage institutions (PMIs) and microfinance banks (MFBs).
Managing Director of the NDIC, Alhaji Umaru Ibrahim, who made this known in Abuja, said this was part of its efforts at repositioning the sub-sector for greater performance of the financial services system.
Ibrahim, who made this remark in Abuja when the Board of Directors and Management of the Federal Mortgage Bank of Nigeria (FMBN) paid him a courtesy visit, expressed the Corporation’s readiness to grant financial assistance to deserving PMIs and MFBs, but warned that stringent conditions would be put in place for them to comply with.
He emphasised that MFBs and PMBs that were deliberately mismanaged by their owners would not be eligible for such accommodation bill, adding that details of the novel framework would soon be made known to stakeholders once it gained the? approval of? the board of the Corporation.
While emphasising the strategic role of mortgage financing in the development of the financial services sector, Ibrahim in a statement signed by the Head, Communication and? Public Affairs, Hadi Sule Birchi, remarked that the Federal Ministry of Finance (FMF), Central Bank of Nigeria (CBN) and the Corporation were working on possible measures aimed at reviving the sub-sector towards achieving the transformation agenda of the federal government in the area of affordable housing for all taking cognisance of the huge deficit existing in the industry.
He pointed out that some of the measures include amongst others, the CBN’s revised supervisory guidelines for primary mortgage banks, refinancing scheme in the mortgage sector and the proposed review of the Land Use Act.