“We have to seek recapitalisation because even commercial banks have recapitalised. N5 billion has been share capital, but only N2.5 billion has been paid”
Juliana Taiwo-Obalonye, Abuja
The Managing Director of Federal Mortgage Bank (FMB), Ahmed Dangiwa, has explained why the management of the bank is seeking approval of N500 billion from the government for the recapitalisation of the bank.
Speaking to State House Correspondents after a closed door meeting with the Vice President, Yemi Osinbajo, on Monday, at the State House, Abuja, Dangiwa said recapitalisation of the bank would attract over 10 times of both local and informal investment.
He said: “We have to seek recapitalisation because even commercial banks have recapitalised 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 capitalised 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 the meeting with the Vice President was to follow up on the requests.
“We came to see the vice president as a follow up to our request on capitalisation and other requests and also to brief him about our activities so far. We’ve 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.”
Also speaking on the new product the bank rolled out, 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 turn around time; you find out that off-takers do not need to go through any Primary Mortgage Bank (PMB) to get that loan.”