Nigeria: CBN issues licences to seven mortgage banks

Feb 27, 2014

The Central Bank of Nigeria (CBN) has granted new licences to seven mortgage institutions in the country.

The Central Bank of Nigeria (CBN) has granted new
licences
to seven mortgage institutions in the country.

These were selected amongst 82 Primary Mortgage Institution (PMI) candidates that sought approval for operational
licences
under the reformed consolidation programme
initiated by the CBN, the New Times reports.

The seven successful institutions can now engage in mortgage finance, real estate construction finance and acceptance of mortgage-focused demand deposits.

Other approved services include drawing from mortgage funds and financial advisory services for mortgage customers.

The emergence of the seven licensees, some of which were able to meet the CBN guidelines through mergers and acquisitions, brings an end to the mortgage banking sector consolidation programme introduced in 2011 by the CBN.

The central bank stated at the launch of the project that the idea of state PMIs was to promote the spread of mortgage firms across the six geopolitical zones to further embed the objective of financial inclusion and that it will provide options for operators to remain in business at different authorization levels, Leadership reports.

The new licensees bring to 40 the total number of mortgage institutions in the country.ADNFCR-2976-ID-801698254-ADNFCR