The Federal Government has unveiled plans to inject additional N500 billion into Federal Mortgage Bank of Nigeria (FMBN) over the next five years in order to improve mortgage financing and housing in the country.

The bank’s Chief Executive Officer (FMBN), Ahmed Musa Dangiwa, gave this hint during an interview with Bloomberg in Abuja.

According to him, currently there are only an estimated 50,000 registered mortgages in the country, of which FMBN accounts for 18,200.

The mortgage finance expert explained that the bank was committed to boosting its capital base from N5 billion at a rate of N100 billion a year and therefore expects proposals on its business recapitalization and reorganization to be approved by all arms of government this fiscal year..

He explained: “The company’s current capital base is grossly inadequate that is why we are in the process of ensuring that the capital base be increased. Armed with the extra cash, FMBN can go from the 2,500 new mortgages it plans to sign up this year to 100,000 over the next two years. The extra capital will also encourage other investors to provide additional funding.”

He hinted that by August this year, the bank would commence its fully funded 1,500 housing project under a new “rent-to-own” programme that will help create more mortgages and access to housing.