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.”
The Lagos State Government has reappointed leading Payment Service Bank, Moneymaster for the second phase of the ‘Ounje Eko’ Food Discount Market, which commences across the state on September 1, 2024’.
A food price discount initiative packaged by the Lagos State Government to bring succor to residents of the state, ‘Ounje Eko’ provides a variety of food items to residents at a discount of 25 percent.
The scheme, which recommences on Sunday, September 1, across all the Local Government Areas (LGAs), Local Council Development Areas (LCDAs) and in the premises of five tertiary institutions in the state was successfully piloted in March this year.
MoneyMaster’s innovative and robust payment and collection technology infrastructure was fully deployed during the pilot exercise and once again it has been given the mandate to deploy its cutting-edge collection solution for seamless transactions at Ounje Eko discount markets.
“We are excited to partner with the Lagos State Government in the second phase of the Ounje Eko discount markets as this programme aligns with our corporate philosophy of adding value to people’s lives”, MoneyMaster PSB disclosed in a statement.
Moneymaster’s secure, fast transaction processing and robust payment channels, which facilitated excellent performance in the scheme’s first phase, has been described as the factor responsible for the retention of the bank for the payment programme.
MoneyMaster PSB, which was issued a license by the Central Bank of Nigeria (CBN) in August 2020 has been instrumental in providing financial technology services to bridge the gap between the banked, underbanked and unbanked populace in the country.
Citibank Nigeria Limited has appointed Nneka Enwereji as its Managing Director/Chief Executive Officer.
In a statement issued by the Head of Public Affairs, Nigeria and Ghana Global Communications Enterprise Services and Public Affairs, Lola Oyeka and made available to us on Thursday, it was indicated that Enwereji’s appointment became effective on August 19, 2024, following approval by the Central Bank of Nigeria.
Nigeria CommunicationsWeek reports that Enwereji succeeds Ireti Samuel-Ogbu who has retired from Citi after 36 years.
Commenting on her appointment, the Chairman of Citibank Nigeria Limited, Dr Shamsuddeen Usman, said, “I am very happy about Nneka’s appointment.
“Her deep industry knowledge, strong leadership skills, and a clear vision for the future will ensure the bank continues to help Citi’s clients navigate an increasingly dynamic environment. It has been a pleasure working with her as an Executive Director and I look forward to working with her as the MD/CEO of Citibank Nigeria Limited.”
Sub-Saharan Africa Sub-Cluster Head for Citi, Akin Dawodu, in his comments, said, “Nneka is a strong leader with a proven track record of growing businesses, deepening client relationships, and building strong partnerships. I am confident that she will continue to deliver value for our clients and other stakeholders.”
Commenting on her appointment, Enwereji said “I am excited about this new chapter at the helm of Citibank Nigeria Limited, working with our dedicated team to deliver the full value of Citi’s network to clients and stakeholders.”
Before her appointment, Enwereji was Citi’s Head of Global Network Banking across the SSA sub-cluster, and she led the team in achieving record business growth amidst considerable market complexities.
Her previous roles include the GNB Co-Head for the Middle East and Africa, Africa Trade Services Head and Financial Institutions SSA Trade Head.
Enwereji brings a wealth of experience and her 31-year banking career spans Markets, Corporate & Investment Banking, Transaction Services, Risk Management and Operations.
She has been an Executive Director on the Citi Nigeria board and has also served on different boards in a non-executive capacity. Nneka holds a degree in Computer Science and Economics with first-class honours from the Obafemi Awolowo University and an MBA from the Warwick Business School, UK. She has also attended executive programs at Yale School of Management and the University of California, Berkeley.
With her appointment, the number of female bank MDs in Nigeria has increased.
Fidelity Bank Plc, a leading financial institution in Nigeria and Mastercard have collaborated to launch Fidelity Send, a new initiative to enhance cross-border payments and remittances in Nigeria.
L – R: Kari Tukur, Vice President, Customer and Solutions Center, West & East Africa, Mastercard; Kevin Ugwuoke, Executive Director/Chief Risk Officer, Fidelity Bank Plc; Folasade Femi Lawal, Country Manager, Mastercard; and Osita Ede, Divisional Head, Product Development, Fidelity Bank Plc; at the launch of Fidelity Send powered by Mastercard at the Fidelity Bank headquarters on Friday, 30 August 2024.
Nigeria CommunicationsWeek reports that the collaboration leverages Mastercard’s extensive global network to facilitate near-real-time and cost-effective outbound transactions, driving financial inclusion in the country.
The new solution utilizes Mastercard Cross Border Services—a leading money transfer platform that allows participating banks to use the global Mastercard network to send money safely and securely to beneficiary bank accounts across the world.
Read Also: Fidelity Bank Trains 1,276 Women in Digital and AI Skills
Individuals and businesses using Fidelity Bank branches and digital platforms now have access to near-real-time funds delivery to over 60 countries.
Cross-border remittances continue to play an important role in Africa’s economy, with flows to Sub-Saharan Africa increasing by approximately 1.9% in 2023 to $54 billion, with Nigeria accounting for 38% of the flows.
In 2024, remittance flows to the region are projected to increase by 2.5%, presenting significant opportunities for businesses to expand their services and tap into the growing market of financial transactions across borders. However, limited banking infrastructure, high fees, and long processing times hinder adoption.
This collaboration aims to address these challenges by providing a faster, more reliable, cost-effective, and transparent solution with lower fees, no landing fees, wider management options, and guaranteed funds delivery—aligning perfectly with the evolving needs of customers.
Osita Ede, Divisional Head, Product Development at Fidelity Bank Plc, said: “Our collaboration with Mastercard to introduce Fidelity Send demonstrates our commitment to meeting our customers’ business and lifestyle needs through carefully designed products and services.
“We are pleased to offer our valued customers a quick and seamless means of receiving or transferring funds globally via a range of service touchpoints.”
Fidelity Int’l Transfer is designed to bridge the gap in cross-border payments by providing the Fidelity Bank’s growing customer base with an enhanced banking experience.
This solution also addresses the key challenge of managing foreign currency fluctuations during international money transfers.
Folasade Femi-Lawal, Country Manager, West Africa, Mastercard, said: “We are honored to collaborate with Fidelity Bank to introduce innovative solutions that offer greater choice, security, and flexibility to individuals and businesses in Nigeria.
“Through advancements in payment technology, we aim to empower people and enhance financial inclusion for millions in underserved communities.”
In recent years, Mastercard has amplified its efforts to facilitate better access to cross-border payments in Nigeria and across the continent, in line with its commitment to bringing one billion individuals into the digital economy by 2025.
This collaboration with Fidelity Bank strengthens this initiative and enables both parties to connect and power an inclusive digital economy that benefits everyone, everywhere.
Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged commercial bank with over 8.3 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
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