Lagos to Inject N1bn into Mortgage Bank

The Managing Director and Chief Executive Officer of LBIC, Folasade Folivi, has stated at the agency’s annual general meeting that the Lagos State government would inject the sum of N1bn into the Lagos Building Investment Company for it to meet the minimum capital required by the law to remain in operation as a primary mortgage bank.

Folivi said, “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.”

“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.”