The Federal Mortgage Bank Nigeria (FMBN) has disclosed that it would need increment in its capital base in order to bridge the housing deficit in the country.
Ahmed Musa-Dangiwa, Managing Director of the bank, represented by the Group Head (Risk Management), Mr Kabir Yagboyaju, in Ado Ekiti, Ekiti State on Tuesday at the 9th Annual Public Lecture of the Forum of Heads of Federal Government Establishments, Ekiti State Chapter, titled, “National Housing Fund: Justification, challenges and prospects,” stated that the housing deficit in Nigeria was estimated to be between 17 and 20 million.
“Considering the humongous gap in housing in Nigeria, which is put at between 17 – 20 million, there is a need to shore up the capital base of FMBN,” said Ahmed Musa-Dangiwa.
Mr Musa-Dangiwa stated the proposed capital increment of the bank’s capital base would be to the tune of N500 billion though the bank’s authorized share capital stands at N5 billion with only N2.56 billion paid up. He added that the Federal Government needed to treat the recapitalization of the FMBN as top priority.
Meanwhile, the FMBN boss disclosed that in spite the shortcomings of the National Housing Fund Scheme, it was still the most affordable housing initiative in the country, adding that it needed all the support it could get to improve the performance of the scheme.
“It must be placed on record that the National Housing Fund Scheme remains the most cost-effective means for affordable housing delivery in Nigeria, the support of stakeholders especially employers and labour is needed in improving the scheme’s efficiency,” Ahmed Musa-Dangiwa said.
The FMBN was established in 1956; it was first the Nigeria Building Society (NBS) before the Federal Government, by Indigenization Act (1973) acquired the NBS and consequently renamed it the Federal Mortgage Bank of Nigeria. The bank’s major operation is to supply the mortgage markets with sustainable liquidity for the advancement of homeownership among Nigerians anchored on mortgage financing.