Federal Mortgage Bank To Raise 500 Billion Naira
There is a housing crisis in Nigeria. There isn’t enough for over 200 million of the people who live inside Nigeria.
in fact, it is estimated that Nigeria needs at least 20 million houses to make sure almost everyone has a decent place to call a home.
That has now informed the Federal Mortgage Bank of Nigeria, FMBN’s decision to improved access to housing loans so that more people could afford to own their own houses.
To achieve that, the bank plans to raise $1.4 billion, about 500 billion naira, within the next five years to give people more opportunities to own their homes.
Chief Executive Officer of FMBN, Ahmed Musa Dangiwa told Bloomberg in an interview in Abuja that “the lender is seeking to boost its capital from 5 billion naira at a rate of 100 billion naira a year”.
FMBN, he said, is “expecting proposals on its recapitalization, as well as a reorganisation of its business, to be approved by all arms of government by the end of 2018”.
The company’s current capital base is “grossly inadequate,” he said. “That’s why we’re in the process of ensuring that the capital base be increased.”
Dangiwa said, when the extra capital is raised, the bank can go from the 2,500 new mortgages it plans to sign up this year to 100,000 over the next two years.
“The extra capital will also encourage other investors to provide additional funding,” he added.
Meanwhile, in August, the FMBN will flag off a 1,500-housing project it is providing funding for under a new “rent-to-own” program that Dangiwa says will help create more mortgages and access to housing.
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