Lagos plans to deepen mortgage housing delivery, injects N1bn to revive LBIC
As part of new drives to encourage seamless home ownership, the Lagos State Government has agreed to inject the sum of N1bn into the Lagos Building Investment Company (LBIC).
The target is to enable the hitherto dormant agency to meet the minimum capital required by the law to remain in operation as a primary mortgage bank.
Managing Director and Chief Executive Officer, LBIC, Folasade Folivi, gave the indication during the company’s Annual General Meeting held in Lagos recently.
Folivi said the planned intervention will revive the agency as the share capital of the company had been eroded over the years leading to near insolvency.
According to her, “We realised that it would be insensitive for us to approach the shareholders to shore up the capital when there has been no returns on their investments since 2007”.
“We, therefore, resolved to appeal to the major investor, the Lagos State Government, for a bailout. The government graciously agreed to inject the sum of N1bn for us to meet the minimum capital requirement and remain a going concern.”
Explaining more to investors and shareholders at the AGM, she averred that “It is in the light of this and in line with the relevant provisions of the Investment and Securities Act, the Companies and Allied Matters Act and the Banks and Other Financial Institutions Act that we seek by this meeting to increase the authorised share capital of your company from three billion ordinary shares to four billion ordinary shares.”
