By; VITALIS UGOH Calabar
The Executive Director, Business Development & Portfolio Management, Federal Mortage Bank of Nigeria, (FMBN), Mr Umar Abdullahi has raised alarm that the bank is in dire need of N500 billion as recapatiisation fund to provide affordable housing for Nigerians as well as scale up the secondary mortage market.
Abdullahi disclosed this in Calabar while declaring a two 2-day Southern Zone Retreat of the bank open.
According to him, the bank which is the foremost secondary market was established with a capital base of just five billion naira. He said with such capital base, the bank cannot meet the housing needs of Nigerian
Therefore, he called on the Federal government to urgently recapitalise the bank with at least 500 billion naira to make houses more affordable for Nigerian workers, adding that such move will invariably lead to an upscale in the secondary mortgage market.
Said he “the capital base of the.Federal Mortage Bank is low. The institution is really yearning for rescue and recapitalization”.
“Even primary mortgage banks ,he added, 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 recapitalization” .
“I believe that if the recapitalisation is done in the tune of 500 billion
naira ,the secondary mortage 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 ensured that our interest rate remains 6 percent ,a single digit margin.
“We are working with all stakeholders to make sure that houses become very affordable.
“The new management has paid 18 billion naira refund under the National Housing Fund(NHF) scheme ,out of the 24 billion naira that have been so
far paid to over 24,000 beneficiaries and we are not resting on our oars”.
The theme of the Retreat is “Motivating The Informal Sector to Embrace the