According to the constitution of Nigeria, the Federal Mortgage Bank was established to meet the housing needs of all citizens of the country. However, most Nigerians do not know about the functions of the Federal Mortgage Bank of Nigeria. Thus, they have not been able to enjoy its services. This post will enlighten you on the functions of this institution.
The Federal Mortgage Bank of Nigeria is the apex mortgage bank in Nigeria. It was founded in 1956. As at the time of its establishment, it was known as the Nigeria Building Society (NBS).
It was formed as a joint venture of the Federal Governments and Eastern Governments of Nigeria, and the Commonwealth Development Corporation.
It was renamed to Federal Mortgage Bank of Nigeria (FMBN) in 1973 after the Federal government was given full control of the National Building Society through the Indigenization Act. In 1994, the FMBN acquired the status of the apex mortgage institution in Nigeria with the proclamation of the Mortgage Institutions Act 53 of 1989 and the FMBN Act 82 of 1993.
The Federal Mortgage Bank of Nigeria introduced a savings scheme called the National Housing Fund. It is a form of savings that organize and manage long-term funds from the federal government, banks, insurance companies, and Nigerian workers to promote the giving of loans at lower interests to contributors.