FG to inject N500bn into FMBN to address housing deficit

The Federal Government plans to inject N500 billion ($1.4 billion) into its low-cost mortgage lender, Federal Mortgage Bank of Nigeria (FMBN), over the next five years in an effort to increase home ownership in the country.

The Chief Executive Officer of FMBN, Ahmed Musa Dangiwa, made the disclosure during a recent interview with Bloomberg in Abuja.

Nigeria’s housing deficit is estimated at 17 million units, causing the country to seek for ways at improving access to home loans.

According to Dangiwa, there are only an estimated 50,000 registered mortgages, of which FMBN accounts for 18,200.

Read also: FG, States, LGs receive N608.33bn in May

He said the lender seeks to boost its capital from N5 billion at a rate of N100 billion a year, adding that the bank expects proposals on its business recapitalization and reorganisation to be approved by all arms of government by the end of 2018.

“The company’s current capital base is grossly inadequate, that is why we’re in the process of ensuring that the capital base be increased.

“Armed with the extra cash, the lender can go from the 2,500 new mortgages it plans to sign up this year to 100,000 over the next two years, Dangiwa said. The extra capital will also encourage other investors to provide additional funding,” he said.

Dangiwa hinted that in August, the FMBN would flag off a 1,500 housing project it is providing funding for under a new “rent-to-own” program that would help create more mortgages and access to housing.
By Oluwasegun Olakoyenikan….

 

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