No fewer than 34 Primary Mortgage Banks (PMB) have been licensed by the Central Bank of Nigeria (CBN) to operate in the country.
While 50 per cent of the banks are operating in Lagos, it was gathered that as of the end of September 2018, the CBN said 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.
What may interest you about PMBs
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 demand deposits.
The PMBs also engage in financial advisory services for mortgage customers and other activities the CBN may approve from time to time.
The 182 financial institutions which according to the apex bank, cut across different states of the country include – 154 microfinance banks; 6 primary mortgage banks, and 22 finance companies.
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CBN said 62 of the microfinance banks had already closed shops; 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 (state government-owned) that became insolvent; Royal Savings and Loans Limited in Delta State that also closed shop; Amex Savings and Loans Limited in Lagos that failed to recapitalise; and Supreme Savings and Loans Limited also in Lagos that closed shop.
The CBN disclosed that eight finance companies voluntary liquidated; 13 failed to recapitalise; while one became insolvent.