The Minister of Works and Housing, Mr. Babatunde Fashola, SAN has called on the newly inaugurated Board members and Management Team of the Federal Mortgage Bank of Nigeria (FMBN) to comply with the law setting up the Bank, saying that as a creation of the law, members are forbidden from making the Bank do anything that the law does not authorize.
The Minister gave this charge at the inauguration of the new 7- Board members and Management Team of the Federal Mortgage Bank on Thursday 21st April, 2022 in Abuja, saying that any member of the Board that deviates from the primary functions and powers of the Board can become individually and corporately liable for noncompliance with the Law.
Fashola said, “I have taken time to address the Law setting up the institution you have been appointed to administer, so as to leave you in no doubt whatsoever, as to what your mandate and purpose is.”
He said that the caution on the need for compliance to the mandate of the Bank became important because the tenure of the previous Boards and Managements did things not permitted by the Law. “This has become the important starting point for my inauguration remarks because in the tenure of previous Boards and Managements before this administration, the Bank did things the Law did not contemplate and this has resulted in hobbling liabilities which I regret to inform you that you must now confront and resolve,” he said.
Speaking further, he called on the new Board and Management to bring to a lawful end all other ventures into which the Bank has dabbled into which are not supported by Law saying, “I expect this to happen through due process, supported by Legal consultations, Board debates and decisions and Ministerial or Presidential approvals as may be necessary.”
He said that it was a huge privilege for them to be chosen as Board Members and Management Team of the specialized Bank that is set up to provide Mortgage Banking services to Nigerians saying that they should use the opportunity to serve their father’s land. “It is not an opportunity for self-help but an opportunity to help others, especially to own a home, by rendering selfless service,” he charged the Board.
Mr. Fashola listed the functions of the Bank as encapsulated by the Law to include amongst others: to provide long-time credit facilities to mortgage institutions in Nigeria at such rates and such terms as may be determined by the Board in accordance with the policy of Federal Government. Also, the Bank is to encourage and promote the development of mortgage institutions at rural, local, state and Federal Levels.
Also speaking on the powers of the Mortgage Bank, he said it can accept deposits and savings from mortgage institutions and other institutional depositors and establish a sinking fund for the redemption of securities by the Mortgage Bank and provide for contributions by it to the sinking fund amongst others.
The Permanent Secretary of the Ministry, Mr. Bashir Alkali thanked Mr. President for graciously approving the re-constitution of the new Board and Management of the Bank following the expiration of the tenure of the former Board.
The Permanent Secretary who was represented by the Director Overseeing the Office of the Permanent Secretary, Engineer Chukwunwike Uzo said that the Federal Mortgage Bank of Nigeria is a critical Agency of Government under the supervision of the Federal Ministry of Works and Housing with the mandate to provide long term credit facilities to mortgage institutions in Nigeria and to encourage and promote the development of mortgage institutions at the rural, local, State and Federal levels.
In his remarks, the Chairman of the Board, Mr. Gbeleyi Ariyo lauded Federal Government for reconstituting the Board and Management of the Mortgage Bank saying the impact the Bank plays in national and economic development was very crucial.
He expressed optimism of meeting up with the huge expectation from Government considering the capacity of members of proven track records of integrity and performance pointing out that members are drawn from Banking sector, diverse ethnicity and gender, he promised not to fail in their responsibilities.
On behalf of other members of the Mortgage Bank Board and the Management Team, the Managing Director/ Chief Executive of the Bank, Mr. Hamman Madu thanked President Muhammadu Buhari, GCFR for appointing them into the exalted position of Nigeria’s apex Mortgage Institution.“I thank Mr. President, the Honourable Minister, the Minister of State and the Permanent Secretary for finding us worthy to be appointed on the Board and the Management Team.
We are humble and excited to be chosen and to undertake the responsibility,” he said.
According to Madu, housing is one of the basic human needs and to access housing finance is a critical ingredient in achieving the housing needs of all Nigerians. He promised on behalf of the Executive Management Team and Board to work harmoniously to reposition the Bank to deliver on its core mandate.
 to comply with the law setting up the Bank, saying that as a creation of the law, members are forbidden from making the Bank do anything that the law does not authorize.){kind=link}