With only two months away from the recapitalisation deadline given by the Central Bank of Nigeria (CBN) to mortgage banks in the country, the President of the Mortgage Bankers Association of Nigeria (MBAN) and Chief Executive of Resort Savings and Loans Plc, Abimbola Olayinka has said the number of mortgage banks would be reduced to 25 from the current number of 70.
According to him, some mortgage banks have already started their merger process, while others were in the process of raising funds to meet the recapitalisation deadline.
He however noted that there was no likelihood that the CBN would extend the April 31, 2013 deadline, saying “we have been on this for about two or three years now, so I do not think there will be an extension. The CBN has given us enough time and I think the April deadline is okay.”
Olayinka further noted that within the next few years more attention would be on the mortgage banking industry. He said there was the possibility of another recapitalisation exercise for the industry in the next few years to enable the mortgage banks take on more projects.
He explained that, having recapitalised, mortgage banks in the country would be well poised to address the housing challenges of the country. With a housing deficit of over 16 million units, Olayinka said “there is a need to address the various challenges of the mortgage sector which include liquidity, titling, interest rates, poor savings culture, non-remittance amongst others.
He stated that MBAN was working with some other institutions to address the liquidity issue in the mortgage industry which would allow mortgage banks embark on more projects and grant more facilities to the public.
This he said would also help reduce the housing deficit gap of the country as the banks will have the capacity to take on more projects.