The Federal Government of Nigeria is taking steps to boost the share capital of the Federal Mortgage Bank of Nigeria (FMBN) to N250 billion in the coming months as part of its efforts to address the country’s significant housing deficit. This announcement came from the Managing Director of FMBN, Gimba Ya’u Kumo, during a send-off and welcome dinner held by the bank for its management in Abuja.
Kumo stated that Nigeria’s housing deficit, which stands at 17 million units, has compelled the government to explore avenues for increasing the share capital of the mortgage bank. The goal is to substantially reduce the housing deficit within the shortest possible time frame.
He assured stakeholders that discussions regarding the capital raise have progressed significantly, saying, “We have set an agenda for ourselves and chief among them is the recapitalization of the bank. We have made substantial progress on that, in the next few weeks we will see results on the table. We will work hard to continue to satisfy the yearnings of Nigerian workers.”
Kumo also expressed concern that FMBN is significantly undercapitalized compared to mortgage banks in other West African countries. He emphasized the need for the government to expedite its efforts to improve the bank’s capitalization, as a larger capital base would enable FMBN to refinance mortgages and meet the growing demand for mortgage loans from various stakeholders.
At present, the primary source of funding for the bank is the National Housing Fund collection, which consists of a 2.5 percent contribution from workers’ salaries. However, this fund is inadequate compared to the housing needs of Nigerians.
Kumo commended President Goodluck Jonathan for his reappointment and pledged to build upon the achievements already made by the bank. He expressed his commitment to delivering results and further improving the bank’s operations.
Elder Bisi Egunjobi, the Chairman of the Board of FMBN, welcomed the new executives and praised the outgoing executives for their efforts in restoring the bank to its esteemed position. He emphasized that the institution has made significant progress in recent years and is poised to achieve even greater heights.