FGS targets N5 billion capital base

Akin Adewakun, Lagos

3-bedroom semi-detached flat at Amorit Estate,
Osogbo.DRIVEN by the objective of continuously staying ahead of competition and also amass needed capacity to meet the growing needs of its customers, First Generation Homes Savings and Loans Limited (Mortgage Bankers) has commenced a capital raising exercise.

The recapitalisation, which is coming ahead of anticipated consolidation in the mortgage banking sector will see the bank grow its core capital to N5 billion from about N1.5 billion it is at present. The bank has already engaged one of the nation’s leading capital market operators, Crown Asset Management Limited as financial consultant to the recapitali-sation.

The managing director of the financial institution, Mr. Felix Daniel said the capital raising exercise would be concluded in the current quarter of the year. “The purpose is basically to enable the bank meet up with the trend of rapid expansion in its business. As a leader in mortgage financing, we have come to a level in our business where we need to strengthen our capital base for us to continue to service our individual and corporate clients many of them being among Nigeria’s biggest developers,” he added.

FGH is an Abuja based mortgage bank and a primary mortgage institution (PMI). It is reputed as having the biggest share of the market in terms of business volume. FGH is reported to have assisted over 5000 Nigerians access the National Housing Fund (NHF).
Mr. Daniel pointed out that the bank is talking with some state governments to provide mass housing for their indigenes at the state capital.

“A particular state is discussing with us to develop a satellite town away from the state capital for its civil servants. Good a thing, we have the financial muscle, knowledge base and competence to execute the projects. The new fund will strengthen our capability to take up more of such businesses, which we know more clients will be coming.”

The managing director said it is part of the objectives of FGH to assist Nigeria meet the Millennium Development Goals (MDGs) on housing, stressing that it has influenced its primary mortgage activities and homes financing. He called for greater awareness and mobilization of Nigerians for the NHF which he said FGH has accessed with over 90 percent success rate.

Some of the housing projects wholly or jointly financed by the bank recently and within the FCT include Mbora 1 estate, which is about 3, 500 housing units; Mbora 11 estate comprising 3,700 housing units and Lokogoma housing estate which is about 3,800 housing units. Others include Dakwa housing estate of about 4,500 units; Life Camp housing estate made up of about 189 units and Abita comprising 98 units of mixed house types among others. “Bora was done for about N2.7 billion; Lokogoma has taken close to N2 billion. About N2 billion has been committed in Dakwa. Life camp has taken about N600 million,” said the managing director.

National Assembly may review port concession

Dele Aderibigbe & Folashade Alli, Lagos

The National Assembly on Monday expressed dissatisfaction with the on-going Port reforms, especially as they relate to issues of ports concession, and sent jitters to stakeholders that it may soon call for review. The House Committee on Privatization which made the view public while on a fact-finding mission to the Lagos Ports, said its views were based on observations which showed that the port concession in its present format was laddened with irregularities and illegalities, especially as there had been no legal framework till date, to back the concession.

However, the Bureau of Public Enterprises spokesman, Mr. Chukwuma Nwoko, described the committee’s mission as vindictive and blackmail, saying it was an attempt to rubbish BPE. Presenting the position of its committee, its Chairman, Hon. Njida Gella Ahmed, noted that Nigerian Ports Authority (NPA) lacked a legal framework to concession the ports, particularly as there was no specific guidelines to conduct the exercise. He plained that the multi-national company which benefited from the concession complied with international best practices in other countries, but in Nigeria, the reverse was the case.

“A lot of importers still prefer to import through other countries. If the concession is favourable, they would not have taken such a step to import from other country,” he noted. But NPA Managing Director, Mallam Abdulsalam Mohammed, told the committee that one of the greatest hindrances to port concession was the absence of commercial regulator, saying that price was never standard.

“There is need for commercial regulator to regulate the industry”, said the NPA boss, stressing the urgent need for a commercial regulator for the industry, since NPA was not yet structured as a regulator. He admited that there might have been cases of diversion of cargo to other countries, but insisted that this was not as a result of inefficiency, but rather might not be unconnected with high customs tariff regime.