The Federal Mortgage Bank of Nigeria (FMBN) plans to recapitalise to the tune of N500 billion, its Managing Director, Ahmed Dangiwa, has said.
Dangiwa, who spoke with State House correspondents after a closed door 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.