Senate orders CBN to pay equity contribution to mortgage bank

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According to reports, the Nigerian Senate has asked the Central Bank of Nigeria to immediately pay its equity contribution of 1.5 billion Naira to the management of the Federal Mortgage Bank of Nigeria.

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The Chairman of the Senate Committee on Housing and Urban Development, Senator Barnabas Gemade, gave the order on Wednesday in Abuja during an oversight visit to the Federal Mortgage Bank of Nigeria.

Senator Gemade said the equity fund would assist the bank in providing affordable housing to Nigerians.

He also announced plans by the committee to make budgetary provision in the 2017 budget to enable the Federal Government address issues of housing deficit.

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“We have seen the Central Bank of Nigeria make donations of billions of Naira in this country and for them to leave a responsibility like equity in a bank that is the foremost mortgage institution in Nigeria and contributing to the welfare of ordinary people by providing mortgage financing unattended to all these years leaves a lot be desired.

“I think that CBN should be ashamed of this particular situation and should do something about as quickly as possible,” he said

The Acting Managing Director of the Mortgage Bank, Mr Richard Esin, in his remarks promised to implement a new business model with a sharp focus on the mass and middle income markets that will provide affordable houses at five million naira and below.

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“Over the next two dry season cycles, our plan is to, in phase one, ensure the completion of 24 estates. This will also lead to the generation of about 5,000 houses in the nation’s housing stock.

“A second phase with 38 estates, resulting in the erection of about 10,000 houses in the nation’s housing stock and then the last phase is the completion of 14 housing estates that will also bring in about 2,300 houses in the nation’s housing stock,” he told the lawmakers.

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Nigeria’s housing deficit is huge, with the available housing to expensive for middle class and low income earners to access.

3 thoughts on “Senate orders CBN to pay equity contribution to mortgage bank

  1. Methinks the constitutional role of the senate ends at making laws, while it's the duty of the excutive to apply the law
    After all Nigeria took after the US regarding the presidential system of government
    I never heard of such a situation in US where the congress go out of their way to usurp the roles of the executive
    I stand to be corrected

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