Seven specialised loan recovery task teams have been established by the Federal Mortgage Bank of Nigeria (FMBN) to expedite the recovery of its loans that are located around the nation.
Shehu Osidi, the Bank’s managing director, who officially opened the teams in Abuja, stated that the decision was required to improve the Bank’s operational efficiency and financial stability by lowering the percentage of non-performing loans.
He claimed that FMBN has been instrumental in helping Nigerians obtain financing for cheap housing over the years, which had a major positive impact on the accomplishment of the country’s housing goal and the encouragement of home ownership.
The Bank’s capacity to successfully recover debts and reinvest them in new initiatives, according to Osidi, will determine whether these efforts are sustainable. He underlined the necessity for a specialist task team to help with loan recovery, pointing out that the Bank has not done a good job of it over the years.
“The formation of these teams represents a critical turning point in our continuous endeavours to improve the Bank’s operational effectiveness and financial stability.”
“A key element of our financial management approach is loan recovery. This is to preserve the integrity of our loan operations while guaranteeing that funds are accessible for distribution to new beneficiaries.
“We must recognise the significant obstacles we have with our Non-Performing Loans (NPLs), even in light of the achievements we have seen in our home delivery initiatives. He stated that although there are NPLs that result from external circumstances and transgressions, we, as internal stakeholders, bear a significant portion of the guilt for the obvious operational and administrative inefficiencies.
The FMBN boss reiterated the task teams’ mandate, which included conducting desk reviews of assigned loan portfolios that included loan histories, real estate, collateral conditions, outstanding balances, and the identities of the borrowers. The team would also consider loan segmentation and recovery prospects, devise a comprehensive recovery plan, involve pertinent parties, and employ both formal and informal but appropriate recovery techniques.