Managing Director of Federal Mortgage Bank of Nigeria (FMBN), Mr Ahmed Dangiwa, has briefly explained the process of benefiting from the Rent to Own housing scheme of the federal government of Nigeria.
Addressing State House correspondents after a closed-door meeting with the Vice President, Mr Yemi Osinbajo, in Abuja recently, Mr Dangiwa said with the new Rent to Own, Nigerians don’t need to have any equity contribution.
“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 find out that off-takers, they do not need to go through any PMB to that loan.
“You just find the estate that you want and you enter there in collaboration with your employer and then the house becomes your own.
“It has started already; we have funded estates all over the country; over 20 states of the federation which are contributors 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,” he said.
Also, he said during his meeting with the Vice President, the issue of getting an approval of N500 billion from the federal government for its recapitalisation was discussed.
According to him, this would enable the financial institution to attract over 10 times of both local and informal investment.
“We have to seek recapitalisation because even commercial banks have recapitalized over time and 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.”