Senate: CBN, NSITF and NSITF to pay up equity contribution for FMBN

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The Federal Government, Central Bank of Nigeria (CBN) and Nigeria Social Insurance Trust Fund (NSITF), being are the shareholders of the Federal Mortgage Bank of Nigeria (FMBN) have being called upon by Nigeria’s Senate Committee on Lands, Housing & Urban Development to pay up their equity contribution and actualize the recapitalization of the Bank.

The Committee under the Chairmanship of Sen. Barnabas Gemade made this statement while on a visit to the Bank as part of its oversight function.

The Committee observed that the CBN has a vital role to play in making the Federal Mortgage Bank of Nigeria function effectively by fully exercising its statutory roles to the Bank of funding and regulating the Apex Mortgage Bank in the country. He said, there is no way FMBN could address the plethora of daunting challenges in the mortgage industry without being supported by the CBN and the Federal Government.

Senator Gemade affirmed that the N5 billion capital base of the Bank is abysmally low and urged the shareholders to hasten up by increasing the capital base of the Bank to reflect current realities.

In his remarks, the Managing Director/Chief Executive, Federal Mortgage Bank of Nigeria (FMBN), Ahmed Musa Dangiwa maintained that since the establishment of the Bank it has not received any budgetary appropriation from the Federal Government and therefore relies solely on income generated from contributors under the National Housing Fund (NHF) scheme to finance its activities.

 

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