CBN Certifies 34 Primary Mortgage Banks
By Ngozi Onyeakusi
The Central Bank of Nigeria has certified only 34 firms as licensed primary mortgage banks operating in country with 50 per cent in Lagos.
According to report released by the apex bank in September end, 17 of the PMBs were in Lagos; eight in Abuja; two in Akwa Ibom State; while Oyo, Delta, Ogun, Kebbi, Jigawa, Abia and Osun have one each.
In September, the CBN gave a notification to revoke the operating licences of 182 other financial institutions in the country, of which six PMBs were included.
One hundred and fifty four of the affected institutions are microfinance banks while the remaining 22 are finance companies.
The CBN said 62 of the microfinance banks had already closed shop; 74 became insolvent; 12 were terminally distressed; while six voluntarily liquidated.
The CBN listed the primary mortgage banks for revocation as Accord Savings and Loans Limited in Lagos that failed to recapitalise; and Ahocol Savings and Loans Limited in Anambra (state government-owned) that closed shop.
Other mortgage banks for revocation are Trans-Atlantic Savings and Loans Limited in Bayelsa (also state government-owned) that became insolvent; Royal Savings and Loans Limited in Delta State also closed shop; Amex Savings and Loans Limited in Lagos that failed to recapitalise; and Supreme Savings and Loans Limited in Lagos that closed shop.
The CBN disclosed that eight finance companies voluntary liquidated; 13 failed to recapitalise; while one became insolvent.
According to the apex bank, the affected institutions are from different states of the federation.
The CBN described a PMB as any company that is licensed to carry out primary mortgage banking business in Nigeria. They are permitted to engage in mortgage finance, real estate construction finance within the permitted limits, acceptance of savings and time/term deposits and acceptance of mortgage-focused
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