FMBN appeals to CBN over equity contribution

By IAfrica
In Nigeria
Aug 24th, 2014
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• Eyes N250 billion capital base

The Federal Mortgage  Bank of Nigeria (FMBN) has appealed to the Central Bank of Nigeria (CBN) to expedite action on the payment of its outstanding equity contribution to the bank’s take off grant, its Managing Director, Mr. Gimba Ya’U Kumo, said.

Although the Federal Government had paid up its share of the equity when the FMBN took off, the expansion of the scope of operation of the bank 16 years ago, to carry secondary mortgage business, led to a re distribution of its shares between the CBN and the Federal Government.

He said: “The CBN has paid its first part of the share of about N60 million, while the Federal Government has fully paid up. We are now discussing with the new management of the CBN to pay up their balance and they have promised to pay very soon.”

The FMBN chief said there was an urgent need to increase the financial muscle of the mortgage institution to cope with the demands of modern day mortgage business.

He added that the financial muscle of the FMBN is in two folds- the share capital, which he said is not yet fully paid up. The second part, he further explained, is the working capital to enable it carry out mortgage activities and funding of buildings, especially because the housing stock as presently constituted, is not enough.

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