The Federal government is set to inject N500 billion into Federal Mortgage Bank of Nigeria (FMBN) over the next five years, in a bid to improve access to Mortgage loans and home ownership for Nigerians.
The Chief Executive Officer (FMBN), Ahmed Musa Dangiwa, disclosed this during an interview with Bloomberg in Abuja. According to Dangiwa, there are only an estimated 50,000 registered mortgages, of which FMBN accounts for 18,200.
He stated that FMBN seeks to boost its capital from N5 billion at a rate of N100 billion a year and thus expects proposals on its business recapitalization and reorganization 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 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,” he said. Dangiwa mentioned 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.