By Lawrence Olaoye Abuja
Vice President Yemi Osinbajo has assured that the N500 billion recapitalisation request made by the management of the Federal Mortgage Bank (FMBN) will be presented at the National Economic Council (NEC) meeting.
This was revealed by the Managing Director of the bank, Arc. Ahmed Dangiwa, who briefed State House Correspondents after a meeting with the Vice President on Monday evening.
Dangiwa also spoke about the Rent-to-own housing program of the FMB with the equity contributions of the National Housing Fund (NHF).
On his mission to the Villa, the FMB boss said “We came to see the Vice President as a follow up to our request on capitalization 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 NHF that we have just commenced.”
Asked what new program he had introduced in the FMB, Dangiwa said “What is new is that with the Rent to Own product, you don’t need to have any equity contribution and secondly, you enter into the house as a tenant and over years, it becomes your own just like owner occupier basis. It reduces debt turnaround time.
You just find the estate that you want and you enter there in collaboration with your employer and then the house becomes your own.”
On when the program will start, he said
“It has started already. We have funded estates all over the country; over 20 states of the federation which any contributor to NHF can now go and choose the house you want within those estates. FMB offices within those states will then profile you and then send to the head office for approval.”
On Osinbajo’s response, he said “The Vice-President appreciated the efforts that we are making; he promised to take it to the National Economic Council meeting for further deliberations.”
He added that the bank had already committed about N65 billion to the Rent-to-own housing project.
On the challenges facing the bank so far, he said “There is not much challenge apart from the fact that we want people to come in and know that NHF is working; to know that the estates are there for people to go and choose and then move in.
“We have to seek recapitalisation because even commercial banks have recapitalized over time. N5 billion has been the share capital of the bank but only N2.5 billion has been paid. Even other Private Mortgage Banks have capitalized over N5 billion. With the recapitalization of N500 billion, we will attract investment both local and informal; over ten times of that investment and it is going to reposition the bank properly.