The National Insurance Commission (NAICOM) and the Federal Mortgage Bank of Nigeria (FMBN) have agreed to collaborate to insure all mortgages in the country.
The partnership, if implemented, is expected to deepen insurance penetration and provide the much needed funds required by the National Housing Fund (NHF) to enable it bridge the country housing deficit.
To achieve this, both regulatory agencies agreed to enforce compliance with Section 5(2) of the NHF Act which “prescribes that every registered insurance company shall invest a minimum of 20 per cent of non-life funds and 40 per cent of life funds in real property development of which not less than 50 per cent shall be paid into the NHF through FMBN.”
Speaking during a meeting between both organisations in Abuja, Commissioner for Insurance, Mr. Mohammed Kari said: “The most important thing is the synergy we are trying to create to ensure that what is due to the mortgage sector goes to the mortgage sector.”
He said FMBN had “promised that all mortgages must be insured which is what the law expects but has not been enforced.”