The Minister of Works and Housing, Mr. Babatunde Fashola, SAN has inaugurated new Board members and Management Team of the Federal Mortgage Bank of Nigeria (FMBN), with the charge to comply with the mandate of the Bank.
This was contained in a statement issued by the Deputy Director, Press and Public Relations, Ministry of Works and Housing, Mr. Stephen Kilebi on Thursday, April 22, 2022.
Kilebi said the Minister gave the charge at the inauguration of the new 7- Board members and Management Team of the Bank on Thursday 21st April, 2022 in Abuja
Fashola stated that any member of the Board that deviates from the primary functions and powers of the Board could 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 was 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.
