The Federal Mortgage Bank of Nigeria has lamented the impact of inflation on the cost of land and building materials, noting that N15m was currently not sufficient to construct homes in certain parts of the country.
This was as it was disclosed that the new N50m loan ceiling was to ensure equitable access to decent and affordable housing for all categories of contributors to the National Housing Fund Scheme.
Recall that the NHF, domiciled with the Federal Mortgage Bank of Nigeria, is a government scheme aimed at mobilising and providing long-term housing loan facilities to Nigerians who are gainfully employed in the public and private sectors.
Workers enrolled under the scheme remit 2.5 per cent of their monthly salary and can only obtain a loan once in their lifetime.
However, many workers accused the bank of failing to live up to its core mandate of delivering affordable and modern homes.
These complaints made the bank increase the mortgage loan limit from N15 million to N50 million per applicant.
But the Group Head of Corporate Communications, Timan Elayo, in his response, said the review of the loans ceiling was to take care of the various interests among the contributors to the NHF Scheme while attracting other people yet to register into the scheme.
She said, “We have realised as a bank that whilst the N15m ceiling may be sufficient in some parts of the country, it may not be so in other parts such as Abuja, Lagos, Port Harcourt, Kaduna and Kano, given the cost-of-living index. Justifying an upward review of the ceiling.
“The review became necessary in consideration of existing economic realities, including the impact of inflation on the cost of land and building materials.