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Economic Confidential,
September 20, 2009
EXCLUSIVE NEWS
FMBN Releases New Bad Debtors as CBN Allays Fresh Fears in Banks
FMBN Recovers N2bn
Non-Performing Facilities
… Listed Alhaji Jakande, Gen. Magoro, Apostle Hayford Alile,
Chief Karibos, Sijuades, Hajia Amina,
This is the season of
exposure of bad debtors as Economic
Confidential, an online intelligence magazine, finds out that the
Federal Mortgage Bank of Nigeria (FMBN), would soon take legal
actions against its bad debtors after it recovers N2bn
non-performing facilities.
The list of the debtors of its
non-performing loans contains names of popular past political office
holders, politicians, businessmen and
religious leaders. This development came
as the Central Bank of Nigeria allays the fear of the public on
speculations of new damaging report on Nigerian banks. Insisting
that examiners have concluded the audit of 11 of the 14 banks not
included in the first exercise, and that “based on the reports
received so far, the clear indications are that the bulk of the
problems have been effectively dealt with in the first audit round
and no decision has so far been taken on these 14 banks.”
While the CBN’s position was contained in a statement by the bank’s
spokesman, Mohammed Abdullahi, the position of FMBN came from the
management headed by Abdulsalam Ahmed, a mortgage banker
who was appointed the managing director in April 2009.
The Economic Confidential finds out that FMBN requires a massive
recapitalisation to enable it fulfil its mandate of providing the
needed finance to meet the nation’s housing needs and was compelled
to issue the last warning to defaulters saying that “following
several demands notices and in line with the ongoing sanitisation in
the banking industry, it has become necessary to request defaulting
customers of the bank to regularise their accounts within twenty one
days which will expire on Monday October 5, 2009.”
The bank which has so far recovered N2.093 billion non-performing
facilities from mortgage institutions mostly states-government owned
across the country as at July 2009, Economic Confidential gathered
may resort to using the anti-corruption and security forces by the
end of the deadline through all necessary legal actions, including
regulatory agencies against the defaulters.
The major debtors in the bad debts included CITEC International
Estate ltd owned by Oludare Bello, which owes N1.7bn, Cambial
Limited owned by Yemi Obadeyi owing N2bn, Same Global system Ltd
owned by Ehi Musibau and Sijuades owing N1.6bn.
The popular names in the list of the debtors included Chief Okoya
Thomas whose company, Netconstruct Nigeria Ltd owes N454mn; Major
General Magoro whose company, Modular limited owe N332mn; Hajia
Amina Abubakar of Imani and Sons Limited that owes N249mn; Alhaji
Lateef Jakande of Good Homes Estate Ltd that owes N219mn; Apostle
Hayford Alile of Shelter Initiatives Limited that owes N295mn; Dr.
Yemi Ogunbiyi of Tanus Property Dev Ltd that owes N198mn and Chief
Gabriel Karibo family, whose company, Atasi-Isi Supplies and
Services owes N723mn.
The Managing Director of the nation’s apex mortgage bank, Abdulsalam
Ahmed, recently disclosed that the bank needs approximately N40
billion (about $132million) capital base in order to effectively
carry out its operations. He said the bank’s N5 billion (or $17
million) capital base is grossly inadequate in view of the magnitude
of its mandate to bridge the housing finance gap in Nigeria, which
runs into trillions of naira. The FMBN’s current capital base is
insignificant when compared with an average capital of $132 million
held by similar institutions in some other countries.
The capital base of the bank which is insignificant is yet to be
fully paid up due to inability of CBN and the Nigerian Social
Insurance Trust Fund (NSITF) to pay their equity contributions of
N1.5 billion and N1.0 billion respectively, representing 30 per cent
and 20 per cent of the current approved capital base.
Read
more:
The
Table/List of Bad Debtors in FMBN
Profile of the New MD FMBN
FMBN Raises N17bn for
Recapitalisation |
