We’ve Open Discussion With Central Bank On FMBN Recapitalisation—MD

The newly constituted management team of the Federal Mortgage Bank of Nigeria has commenced engagements with the Central Bank of Nigeria for the recapitalisation of the bank.

The Managing Director, FMBN, Mr. Hamman Madu, said this when the Director General of the Bureau of Public Enterprise, Mr. Alex Okoh, paid a courtesy visit to the new FMBN management team on their appointment in Abuja.

Madu told the BPE team that the management of the bank is ready to create a business driven and impactful FMBN.

He further added that the restructuring and recapitalisation of the FMBN was top on the new management’s priorities.

He said: “The recapitalisation and repositioning of the FMBN is an area that our team intends to pursue vigorously.

“Engagements are ongoing with the Central Bank to map out best ways to achieve it.

“Resolving FMBN financials is a critical next step that would lay the foundation for further action and we are working with relevant stakeholders to ensure this is done.”

He added that the five-year FMBN plan will be reviewed for more aggressive implementation starting this year, explaining that the over-reliance on the funds accruing to the National Housing Fund (NHF) scheme has distorted the bank’s business.

Okoh in his comments assured that the BPE would deepen collaboration with the FMBN executive management team towards recapitalising and repositioning the bank for more effective affordable housing delivery.

He explained that the BPE recognises the strategic role of the FMBN to bridging the critical gaps of housing shortfall in the country, and pledged to work to ensure the success of the plan.

He also informed the FMBN management on the BPE’s ongoing engagement with the bank towards the implementation of the National Council on Privatisation (NCP)’s decision to commercialise the bank for greater service delivery.

He stated further that there is an urgent need to recapitalise the bank, restructure its operational framework, implement internal reform initiatives and the streamlining of the FMBN five-year strategy plan to fit the NCP’s goal of a reformed, efficient, and more functional and financially robust bank.

President Muhammadu Buhari, had on April 14 approved the reconstitution of the Board of the FMBN, with a view to repositioning the bank as a core banking institution with core competence in mortgage finance.

Buhari had earlier this year, appointed Mr Ayodeji Ariyo Gbeleyi, a Chartered Accountant as Chairman of the FMBN Board.

On the new Board, Hamman Madu, representing the North-East zone with a background of over 30 years in the mortgage industry, was appointed the Managing Director and Chief Executive Officer of the bank.

Other members are Umar Zubaida, Executive Director, Finance and Corporate Services – representing the North-West zone; Chukwuma Kingsley, Executive Director, Business Development and Portfolio Management – representing the South-South zone; Mustapha Lukman Olayiwola, Executive Director, Loans and Mortgage Services – representing the North-Central zone.

Others listed by the Presidency included Abimbola Asein from the South-West zone – representing the Federal Ministry of Works and Housing; Ejezie Sandra Nkechi, South-East – representing the Public, as well as two representatives of the Central Bank of Nigeria.

The appointment of the Board took effect from April 13, 2022, with the exception of the Chairman, Mr Ayodeji Ariyo Gbeleyi, whose appointment took effect from January 5, this year.