The Federal Mortgage Bank of Nigeria (FMBN) plans to recapitalise to the tune of N500 billion, its Managing Director, Ahmed Dangiwa, has said.
Mr Dangiwa, who spoke with journalists after a meeting with Vice President Yemi Osinbajo at the Presidential Villa, said the recapitalisation would boost service delivery.
“We came to see the vice president as a follow up to our request on recapitalisation and other requests and also to brief the vice president about our activities so far.
“We have briefed him on some of the activities we have rolled out like the Rent-to-Own and the introduction of equity contributions by the National Housing Fund (NHF) that we have just commenced.
“We have to seek recapitalisation because over time, even commercial banks have recapitalised; N5 billion has been the share capital of the bank, but only N2.5 billion has been paid.
“Even other Private Mortgage Banks (PMB) have recapitalised over N5 billion; with the recapitalisation of N500 billion, we will attract investment both local and informal – over 10 times of that investment and it is going to reposition the bank properly,” he said.
According to him, under the Rent-to-Own product, one does not need to have any equity contribution, as one will enter into the house as a tenant, and over the years, it becomes one’s property like owner-occupier.
Mr Dangiwa said that under the new programmes, one would find the estate that one wanted, enter there in collaboration with one’s employer; and then the house becomes one’s property.
The managing director said that the FMBN had funded estates in over 20 states of the federation, which any contributor to NHF could go and choose the house he wanted within the estates.
He said that the FMBN offices within the states would profile the buyer and then send to the head office for approval, adding that the bank had committed over N65 billion to the programme.
Mr Dangiwa said the vice president appreciated the efforts FMBN was making and promised to take the recapitalisation request to the National Economic Council meeting for further deliberations.
He said that there was need for Nigerians to key into the Rent-to-Own programme and own their own houses.