Federal Mortgage Bank seeks N500bn recapitalisation fund
Housing deficits in Nigeria has been on the rise, and many mortgage banks have not been able to make meaningful impacts over the years.
Also, the process for getting mortage facilities is often tainted by some operators, getting facility is an herculean task. Experts say the key challenge facing mortgage banks is capital base.
In this light, Umar Dankane, Executive Director, Business Development and Portfolio Management of the Federal Mortgage Bank of Nigeria has said that the bank needed N500 billion recapitilisation fund for optimal performance.
Dankane made the disclosure on Wednesday in Calabar at the bank’s Southern Zonal Retreat, with the theme “Motivating the Informal Sector to Embrace the National Housing Fund Scheme.“
According to him, for the mortgage market to excel in Nigeria, there is an urgent need for the Federal Government to recapitalise the bank with N500 billion.
“The crucial challenge facing the Federal Mortgage Bank in Nigeria is its capital base. The bank is yearning for government’s rescue through recapitalisation.
“Initially, the bank was created with a capital base of just N5 billion and been the famous secondary mortgage market, it can no longer hold from the realities on ground.
“Today, even the Primary Mortgage Bank has the capital base of N5 billion. “So you can imagine the famous Secondary Mortgage Market still relying on N5 billion capital base.
“It is against this background that when we came on board. We have to review the situation and called on the government that the bank needs to be recapitalised to the tune of N500 billion.
“I strongly believe that if this done, the mortgage market will really excel in Nigeria and the sky will be the limit.
Dankane said that the fund, if provided, would help the bank to provide affordable houses for workers in the country and enhance access to such facilities.
The executive director said that the bank was working at reducing housing deficit in the country, by ensuring improvement in Nigeria’s housing stock.
He said that the primary function of the bank was to provide affordable housing to workers, adding that the bank’s interest rate stood at 6 per cent single digit.
Dankane also said that the bank was working with developers and all relevant stakeholders in providing solutions to workers’ housing deficit.
He said that the retreat was organised to harness ideas and proffer solutions on ways to improve on services and explore ways to market the National Housing Fund (NHF) scheme to prospective contributors.
Federal Mortgage Bank seeks N500bn recapitalisation fund by Ogochi Ndubuisi