The Chief Executive Officer Federal Mortgage Bank of Nigeria (FMBN), Ahmed Musa Dangiwa, has said that the Federal Government would inject additional N500 billion into bank over the next five years in order to improve mortgage financing in the country.
Dangiwa, who gave this hint during an interview with Bloomberg in Abuja, said that currently there were estimated 50,000 registered mortgages in the country, out of which FMBN accounted for 18,200.
He explained that the bank was committed to boosting its capital base from N5 billion at a rate of N100 billion a year and therefore expects proposals on its business recapitalization and reorganization to be approved by all arms of government this fiscal year..
The mortgage finance expert said: “The company’s current capital base is grossly inadequate that is why we are in the process of ensuring that the capital base be increased. Armed with the extra cash, FMBN 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.”
The FMBN boss disclosed that by August this year, the bank would commence its fully funded 1,500 housing project under a new “rent-to-own” programme that will help create more mortgages and access to housing.