Nigeria’s Central Bank issues licenses to 7 national mortgage banks

A Housing estate used to illustrate the story
A Housing estate used to illustrate the story

There are now 40 mortgage institutions in Nigeria.

The Central Bank of Nigeria, CBN, has granted new licenses to seven firms that applied to be selected as national mortgage institutions in the country.

The new licensees were among about 82 Primary Mortgage Institution, PMIs, that sought approval for operational licenses under the reformed consolidation programme initiated by the CBN.

The new licensees include Suntrust Savings and Loans Limited; Mayfresh Savings and Loans Limited; Abbey Building Society; Kogi Savings and Loans Limited; Platinum Savings and Loans Limited; Trust Bond Savings and Loans Limited and Jubilee Life Savings and Loans Limited.

Under the revised guidelines for PMIs issued by the CBN under the consolidation programme, licensees were authorized to among other services engage in the business of mortgage finance, real estate construction finance, acceptance of savings and time/term deposits and acceptance of mortgage-focused demand deposits.

Other approved services include drawing from mortgage funds, including National Housing Fund, NHF, facility for on-lending, financial advisory services for mortgage customers and other services approved
by the CBN.

To qualify for selection for the license, companies were expected to make a non-refundable deposit of N1 million with detailed feasibility report stating the aims and objectives of the proposed mortgage bank; a five year financial projection for the operation of the bank indicating expected growth and profitability as well as the organizational structure and composition of the Board of Directors.

Each of the applicants were also expected to submit a copy of their draft memorandum and articles of association, a list showing the names of their promoters and evidence of payment of N5 billion minimum authorized issued capital.

The emergence of the seven licensees, some of which were able to meet the stipulated guidelines through mergers and acquisitions, brings to a conclusion the mortgage banking sector consolidation programme by the CBN introduced in 2011.

The deadline for PMIs to meet the conditions for selection as national primary mortgage bank was set on December 31, 2013.

In a letter dated February 14, 2014 from the Other Financial Institutions Supervision Department, OFISD of the CBN, to the respective Managing Directors of the mortgage institutions, the CBN said the issuance of the licenses followed the review of the submissions by the various mortgage banks.

With the approval, the CBN said the banks have now met the requirement as a national primary mortgage bank in the country.

The new licensees bring to 40 the total number of mortgage institutions in the country, consisting of seven in the national license category, and 33 in the state license category.

The Central Bank of Nigeria, CBN, has granted new licenses to seven firms that applied to be selected as national mortgage institutions in the country.

The new licensees were among about 82 Primary Mortgage Institution, PMIs, that sought approval for operational licenses under the reformed consolidation programme initiated by the CBN.

The new licensees include Suntrust Savings and Loans Limited; Mayfresh Savings and Loans Limited; Abbey Building Society; Kogi Savings and Loans Limited; Platinum Savings and Loans Limited; Trust Bond Savings and Loans Limited and Jubilee Life Savings and Loans Limited.

Under the revised guidelines for PMIs issued by the CBN under the consolidation programme, licensees were authorized to among other services engage in the business of mortgage finance, real estate construction finance, acceptance of savings and time/term deposits and acceptance of mortgage-focused demand deposits.

Other approved services include drawing from mortgage funds, including National Housing Fund, NHF, facility for on-lending, financial advisory services for mortgage customers and other services approved
by the CBN.

To qualify for selection for the license, companies were expected to make a non-refundable deposit of N1 million with detailed feasibility report stating the aims and objectives of the proposed mortgage bank; a five year financial projection for the operation of the bank indicating expected growth and profitability as well as the organizational structure and composition of the Board of Directors.

Each of the applicants were also expected to submit a copy of their draft memorandum and articles of association, a list showing the names of their promoters and evidence of payment of N5 billion minimum authorized issued capital.

The emergence of the seven licensees, some of which were able to meet the stipulated guidelines through mergers and acquisitions, brings to a conclusion the mortgage banking sector consolidation programme by the CBN introduced in 2011.

The deadline for PMIs to meet the conditions for selection as national primary mortgage bank was set on December 31, 2013.

In a letter dated February 14, 2014 from the Other Financial Institutions Supervision Department, OFISD of the CBN, to the respective Managing Directors of the mortgage institutions, the CBN said the issuance of the licenses followed the review of the submissions by the various mortgage banks.

With the approval, the CBN said the banks have now met the requirement as a national primary mortgage bank in the country.

The new licensees bring to 40 the total number of mortgage institutions in the country, consisting of seven in the national license category, and 33 in the state license category.


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