Organisation collaborates with FMBN to solve Nigeria’s housing deficit

The National Insurance Commission (NIC) has formed a partnership with the Federal Mortgage Bank of Nigeria (FMBN).

Nigeriarealestatehub reports that the collaboration is meant to solve Nigeria’s housing deficit and insure all mortgages.

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At a meeting between both organisations in Abuja, the Commissioner for Insurance, Mr. Mohammed Kari, spoke on the aim of the collaboration.

“The most important thing is the synergy we are trying to create to ensure that what is due to the mortgage sector goes to the mortgage sector. All mortgages must be insured which is what the law expects but has not been enforced.

Primary mortgage institutions, will ensure that every mortgage is insured properly and every finance in that sector is insured properly; and that is going to be a big boost to the insurance industry as it’s going to increase penetration and provide more funds to the national housing fund to be able to invest in their projects.”

Mr. Gimba Ya’u Kumo, FMBN Managing Director, said; "the additional funds expected to be generated would help to significantly reduce the housing deficit.

He also revealed the bank's plan to provide affordable housing with the "rent run."

“As you are paying your rent, when you finish payment for the cost of the house, the house becomes yours. That has been the practice all over the globe; so we would start to implement some of these international best practices so that Nigerians would have comfort.”

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