Mr Umar Abdullahi, Executive Director, Business Development & Portfolio Mgt, Federal Mortage Bank of Nigeria, FMBN, has asserted that the bank needs urgent rescue and recapitalisation of 500 billion naira in a bid to provide affordable housing for Nigerians and upscaling of the secondary mortgage market. FMBN
Abdullahi made the assertion in Calabar on Wednesday shortly after declaring a two 2day Southern Zone Retreat of the FMBN open, with the theme: “Motivating The Informal Sector to Embrace the NHF scheme”. The Executive Director of FMBN said that the bank which is the foremost secondary market was established with a capital base of just five billion naira stressing that with such capital base, the bank cannot meet the housing needs of Nigerian workers. FMBN’s Abdullahi who called on the Federal government to urgently recapitalise the bank with at least 500 billion naira to make houses more affordable for Nigerian workers added that such move will invariably lead to an upscale in the secondary mortgage market.
His words: “The capital base of the Federal Mortage Bank is low, the institution is really yearning for rescue and recapitalisation. “It was created with a capital base of just 5 billion naira, being the foremost secondary mortgage market that capital base can no longer stand the realities of current times on the ground, so it needs urgent rescuing. “Even primary mortgage banks have 5billion naira capital base, so it ought not to be so for the foremost secondary market. When we came in, we reviewed the situation and told the federal government the bank needs urgent rescue and recapitalisation. “I believe that if the recapitalisation is done in the tune of 500 billion nairas, the secondary mortgage market will upscale in Nigeria and the sky will be our limit and many Nigerians will have affordable. houses. “We are working tirelessly to make sure Nigerians housing stock improves. The bank is for the Nigerians workers, and we want to provide houses that are affordable and we have to ensure that our interest rate remains 6 per cent, a single-digit margin. “FMBN is working with all stakeholders to make sure that houses become very affordable. “The new management of FMBN has paid 18 billion naira refund under the National Housing Fund, NHF scheme, out of the 24 billion naira that has been so far paid to over 24,000 beneficiaries and we are not resting on our oars”, he said.