The Federal Government of Nigeria is working to raise the share capital of the Federal Mortgage Bank of Nigeria (FMBN) to N250 billion within the next few months in order to enable it tackle the country’s housing deficit, according to its Managing Director, Gimba Ya’u Kumo.

Kumo who spoke at a send forth/ welcome dinner organised by the bank for its management in Abuja, said Nigeria’s 17 million housing deficit had prompted the Federal Government to explore ways of increasing the mortgage bank’s share capital so as to reduce the deficit drastically within the shortest time possible.

He assured that discussions by all stakeholders on the capital raise had reached advanced stages, saying, “We have set an agenda for ourselves and chief among them is the recapitalization of the bank. We have made substantial progress on that, in the next few weeks we will see results on the table. We will work hard to continue to satisfy the yearnings of Nigerian workers.”

Kumo lamented that FMBN was grossly undercapitalized compared to other countries in West Africa, disclosing that there was need for the government to speed up the pace of its desire to improve its capitalization exercise.

A new capital base, he said, will place the FMBN in a better position to refinance mortgages, as it cannot meet the larger part of demands for mortgage loans from its various stakeholders at the moment.

Kumo said, “For now, the only source of funding the bank has to meet the teeming demands of Nigerians is the National Housing Fund collection which is minimal compared to the housing needs of Nigeria. Every worker is expected to contribute 2.5 per cent of the salaries to the fund and if you look at this sum, it is small compared to the housing needs of Nigerians.

He commended President Goodluck Jonathan for finding him fit for re-appointment and assured that he would build on achievements so far recorded by the bank.

According to him, “If you have a boss who has placed so much confidence in you, you have to do your best to succeed. We have tried to improve on the little we met on ground, people say we did well but we are just starting and we hope within the next few months we will be able to do more so that the results of the efforts will be realised.”

In his remarks, Chairman of the Board of the bank, Elder Bisi Egunjobi while welcoming the new executives, also commended the out gone executives on their efforts in restoring the bank to its place of pride, stressing that “we believe that over the last two to four years various elements have been put in place to allow the institution be on its feet. The expectation is that the bank is ready to attain higher heights.