News Column

China,Nigeria : NIGERIA: FMBN acquires a conditional loan of $4b from CHINA to boost housing infrastructure

May 12, 2014

The Federal Mortgage Bank of Nigeria (FMBN) has acquired $4 billion funds from the Chinese investors to enhance the condition of the poorly shaped housing infrastructure of the country.

The Managing Director of FMBN - Mr. Gimba Yau Kumo has made this revelation on Wednesday on the sidelines of the World Economic Forum Africa in Abuja, which will come to an end on Friday.

He has further revealed that the FMBN management squad will settle an agreement on this funding deal with the government officials concerned at a meeting.

The MD added, The Chinese have made an offer to us to lend us about $4 billion dollars to the Federal Mortgage bank of Nigeria.

Kumo has further said that the Chinese investors have awarded the money with an obligation, to be precise a Sovereign Guarantee from the Federal Government of Nigeria, which stipulates that the Government will have to meet the condition in the event of defaulting by the main obligor.

He has stated that the investors condition is nothing new, since it expands to other property markets in which the Chinese investors have invested, such as Singapore. Thus, the FMBN has started discussions with the Finance Minister - Ngozi Okonjo-Iweala to persuade the Federal Government to give its nods to the investors demands.

The mortgage bank MD has also expressed his hopes on settling the agreement because the pact creates a big opportunity to enhance the infrastructure of the Nigerian housing industry.

According to the World Bank s last year report, Nigeria must have N59.5 trillion to deal with its housing scarcities to the tune of 17 million units. The mortgage bank has been successful to provide just 39,425 housing units, including 12,420 units (31.5%) that the FMBN offering during the past 41-month period.

The FMBN, which is making dedicated efforts to alleviate the problem of inadequate housing infrastructure of Nigeria, is likely to boost its capability through the Chinese loan.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: TendersInfo (India)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters