- Floats Police Mortgage
Bank
“Food and Shelter remain tops on man’s hierarchy of needs….”
Every Police Officer needs and deserves not just a temporary Shelter, but a modest home of his own.
“Food and Shelter remain tops on man’s hierarchy of needs….”
Every Police Officer needs and deserves not just a temporary Shelter, but a modest home of his own.
 |
| A 2Bedroom Semi-Detached Bungalow, One of the 260 units of various Types of Houses Acquired by the Nigeria Police Cooperative Society Limited at the nearly-completed Brick City Estate II KUBWA (along Abuja-Zuba Highway) FCT Abuja. House Allocation to interested officers (All Ranks) on Mortgage arrangement already started. This is just one of the several locations across the country; project will cover all States of the Federation. |
The Nigeria Police Savings and Loans Limited (Mortgage Bankers) presently known
as FOKAS Savings and Loans Limited (Mortgage Bankers) is the vehicle that will
deliver Homes to all Police Officers. It is a retirement Plan that
guarantees a Roof over every Officer’s head both now and in the future.
How is this possible? Things you must know.
ü First the initiative is in line with the Federal Government Plan for every worker to own a home of his own and for which the National Housing Fund (NHF) was established in 1993.
ü Every person employed in Nigeria contributes a percentage of his basic salary to the National Housing Fund which entitles the worker to access a Housing Loan from the Federal Mortgage Bank of Nigeria (FMBN), the custodians of the Housing Fund.
ü Loans from the Federal Mortgage Bank can only be accessed through established Mortgage Banks otherwise called Primary Mortgage Institutions (PMIs).
ü The Nigeria Police Force subscribed to the National Housing Fund during the Administration of IGP Ibrahim A. Coomassie, in the year 1994 with deduction of NHF contributions from officers and remittance of same to the FMBN. This led to the establishment of the NHF Desk within the Force to harmonize/reconcile deductions and remittances.
ü The Nigeria Police Force remains the HIGHEST contributor to the Federal Mortgage Bank!
ü As at date, contributions by Police officers to the NHF and remittances to the FMBN total approximately 8billion Naira.
ü Unfortunately, the Nigeria Police Force has not benefited from the facilities available at the FMBN under the NHF Act while other Agencies and Corporate groups benefit from huge contributions of Policemen. Why? Because the Nigeria Police Force could not float a Mortgage Bank to easily access the required loans for its officers and men.
Again, things you must know:
Efforts of the Nigeria Police Force over the years, to establish a Mortgage Bank had been stalled by Administrative instabilities generally occasioned by frequent leadership changes.
ü Apart from other technicalities and statutory requirements by the Central Bank of Nigeria and other Regulatory Agencies, the capitalization sum of N2.5 Billion Naira for one State branch or N5B for a National Branch is required before a Mortgage Bank can be licenced.
ü Considering the interests of the Police in accessing its huge contributions to the NHF, an entirely owned Mortgage Bank is needed to maximally protect the long-term housing initiative for generations of officers/men and even retirees.
ü Options open to the Force included;
- Sourcing for the required fund and floating an entirely new Mortgage Bank.
- Acquiring an existing Bank and recapitalizing it appropriately
- Incorporating a PMI Company with the Corporate Affairs Commission and still undergoing the process of capitalization.
- Of the three options, acquiring an existing PMI was the most cost effective.
BIRTH OF FOKAS
ü FOKAS Savings and Loans Limited (Mortgage Bankers) was an existing Primary Mortgage Institution with equity shares of two hundred and seventy million shares.
ü With technical guidance and following corporate negotiations, the Nigeria Police Cooperative Multipurpose Society Ltd acquired Two Hundred and Fifty Million shares from the total equity shares of the company amounting to 93% of the FOKAS.
ü The acquisition totally places the ownership of FOKAS Savings and Loans Limited (Mortgage Bankers) to the Police Cooperative.
ü Having acquired an existing PMI, what was left was to capitalize the new PMI in line with CBN guidelines.
CAPITALISATION INITIATIVES
· To capitalize the Bank, a private placement offer for the shares of FOKAS Savings and Loans Limited was issued at the rate of N1.10k per share for 2,500,000.000 ordinary shares valued at N1.00 each.
· Sensitization initiatives were initiated with State/Zonal Recapitalization Committees constituted to educate officers and men on the benefits of the scheme which led to subscriptions to the offer by officers and men across all Commands and Formations of the Force.
PRECONDITION FOR LICENCING OF NIGERIA POLICE MORTGAGE BANK
· Opening a Branch in Lagos and Abuja to augment the existing Abeokuta Branch inherited from the acquired FOKAS Savings and Loans
– this has been done
· Reconstitution of the Board of Directors of FOKAS Savings and Loans Bank to reflect its new ownership. This has also been done. The reconstituted Board includes:
- CP Cooperative - Chairman: Funds for the acquisition
was sourced from the
Coop Society
- Mr. Adeloye: MD
- ACP: J.O. Gbenike - Rep Police Budget Dept
- Financial Controller of the Police Cooperative Society
- O/C Police National Housing Fund
- CP Jalingo (Rtd) – Rep Interest of retired Officers
· Increase in the Equity Base of the Rank from initial 500m (FOKAS) t0 N3B.
· Recapitalization of the Bank from its current paid up capital of 500m to 2.5B for one branch or N5b for a Mortgage Bank with National branches.
All these conditions have been fulfilled except the capitalization of the Bank.
RECAPITALISATION OPTION – FULL OWNERSHIP BY ALL POLICE
OFFICERS VIA SUBSCRIPTION TO SHARE ACQUISITION
· The package for all officers to be part owners of the Police Mortgage Bank is a well-thought out Retirement Plan to enable every officer access the Housing Loan and acquire a home of his own.
· The Package requires inpidual officer’s minimal subscription for 10,000 ordinary shares of the Fokas Savings and Loans limited (Mortgage Bankers) which is now the property of the Nigeria Police Cooperative Society.
· Total cost of minimal subscription is put at N11, 000.00 only, payable in two installments of N5, 500.00 each, at the rate of N1.10K per share.
· Process automatically guarantees part-ownership of the bank by every serving Police officer.
· Subsequently willing officers are at liberty to increase their subscriptions.
· Subscription forms are on distribution across all Commands and Formations of the Force to enable Officers appropriately regularize the minimal subscription already deducted and harmonize earlier subscriptions.
· A task force has equally been constituted to ensure fast and early issuance of share certificates to all subscribing officers
HOW WILL THE BANK OPERATE TO BENEFIT OFFICERS IN CONJUNCTION WITH THE NATIONAL HOUSING FUND
· Every contributor to the NHF is entitled to a Mortgage loan of N15m to build, purchase or renovate homes within a maximum repayment period of 30years.
· Such a mortgage Loan attracts a minimum interest of 6% and maximum of 8% per annum throughout the loan tenure which translates into affordable monthly loan servicing deductions for the beneficiary.
· No additional collateral is required to obtain the loan as the home for which the loan is obtained serves as collateral.
· Inpidual Police Officers can on their own, through the Police Mortgage Bank, easily obtain the stipulated loan from the National Housing Fund.
· The Bank may also engage in housing initiatives on behalf of the Officers and deliver finished houses to respective Officers at various locations, utilizing the loans accessed on their behalf from the Federal Mortgage Bank.
BENEFITS OF THE POLICE MORTGAGE BANK
· Repayment of loans may be structured throughout the remaining part of an Officer’s career and even after retirement.
· Upon death/incapacitation, dependents of an Officer will never lose their homes as the bank will accommodate convenient repayment plans by the deceased officer’s family.
· Being the highest contributors to the NHF, accumulated contributions of officers can easily be accessed to develop several hundreds of homes simultaneously at different locations, for officers and men of the Force.
· Retiring officers needing a refund of their total contributions to the NHF and who did not obtain any loans or benefit from the housing scheme can easily, through the Police Mortgage Bank, recover such entitlements in line with the provisions of the NHF Act.
· The initiative guarantees a comfortable home for every Officer of the Nigeria Police Force with results for this within the next one year and continuously after.
· The initiative will help solve the accommodation needs of Police Officers and men.
· The initiative will cater for all personnel of the Force irrespective of rank and has been packaged to give priority attention to members of the Rank and File who are considered more vulnerable in terms of Housing needs.
· The funds derivable from the Capitalisation initiative will enable the recapitalization of the Police Mortgage Bank on a National Mortgage status.
· On payment of the stipulated capitalization sum to the Central Bank of Nigeria, the name FOKAS Savings and Loans Limited will be reverted to the Nigeria Police Savings and Loans Limited (Mortgage Bankers).
· The initiative is a perfect Retirement Settlement Plan
· The initiative will help combat corrupt tendencies within the Force.
PROCEDURES FOR ACCESSING FEDERAL MORTGAGE BANK OF NIGERIA LOAN THROUGH THE NIGERIA POLICE SAVINGS AND LOANS LTD (MORTGAGE BANKERS)
· Applicant must be a contributor to the NHF for a minimum of six months (All Policemen are)
· Applicant must have satisfactory evidence of regular flow of income to guarantee repayment (all Policemen have)
· Applicant must have 3 years tax clearance at the time of requiring the loan (Obtainable)
· Three months pay slip (Obtainable)
· FMBN (NHF) updated passbook – photocopy - (Obtainable)
· Letter of offer/letter of acceptance if applicant is purchasing property or land from a developer or inpidual
· Age declaration and other minor requirements which the Police NHF office can help every interested Police Officer to obtain.
Let it be remembered that:
· Every Police Officer irrespective of Rank is entitled to a Loan of up to N15m at a single digit interest rate not exceeding 8% and repayable over a maximum period of 30 years, to build his own house, renovate his property, purchase a piece of land and purchase a house either independently or through the Police Housing Scheme.
· Therefore the opportunity is equal and available to every Police Officer no matter his rank.
· The minimal subscription of FOKAS shares for which N11,000.00 is being deducted, is also across all Ranks including the IGP, DIGs, AIGs and CPs down to the last Constable.
· Every Police Officer is therefore a part owner of the Police Mortgage Bank and will be issued share certificates for the minimal subscription as well as for additional subscriptions.
· It is therefore not true that the deductions affect only members of the Rank and File.
NOW THE QUESTION IS:
· Is it wise for Police Officers to continue contributing to the National Housing Fund without benefiting from it?
· Should we lose the whooping sum of N8billion jointly contributed by all of us to the Federal Mortgage Bank of Nigeria?
· Should we lose and continue to lose the immense benefits inherent in having a Police Mortgage Bank through minimal subscription and acquisition of shares by all Officers with just N11,000.00 each?
· Do Police Officers and men not deserve to have their own Houses?
These are the questions the IGP and his Management Team have considered and which led to the steps being taken to improve the welfare of All Police Officers.
This initiative is a dream come true for personnel of the Nigeria Police Force especially members of the Rank and File. Imagine owning a house of your own just by subscribing to the Police Mortgage Bank. Today, we all make the commitments to be part-owners of the bank… tomorrow, we shall live in our homes!
Be wise Officers, invest in your future today and Put a roof over your Head!
Welcome to the Nigeria Police Savings and Loans Limited (Mortgage Bankers).
How is this possible? Things you must know.
ü First the initiative is in line with the Federal Government Plan for every worker to own a home of his own and for which the National Housing Fund (NHF) was established in 1993.
ü Every person employed in Nigeria contributes a percentage of his basic salary to the National Housing Fund which entitles the worker to access a Housing Loan from the Federal Mortgage Bank of Nigeria (FMBN), the custodians of the Housing Fund.
ü Loans from the Federal Mortgage Bank can only be accessed through established Mortgage Banks otherwise called Primary Mortgage Institutions (PMIs).
ü The Nigeria Police Force subscribed to the National Housing Fund during the Administration of IGP Ibrahim A. Coomassie, in the year 1994 with deduction of NHF contributions from officers and remittance of same to the FMBN. This led to the establishment of the NHF Desk within the Force to harmonize/reconcile deductions and remittances.
ü The Nigeria Police Force remains the HIGHEST contributor to the Federal Mortgage Bank!
ü As at date, contributions by Police officers to the NHF and remittances to the FMBN total approximately 8billion Naira.
ü Unfortunately, the Nigeria Police Force has not benefited from the facilities available at the FMBN under the NHF Act while other Agencies and Corporate groups benefit from huge contributions of Policemen. Why? Because the Nigeria Police Force could not float a Mortgage Bank to easily access the required loans for its officers and men.
Again, things you must know:
Efforts of the Nigeria Police Force over the years, to establish a Mortgage Bank had been stalled by Administrative instabilities generally occasioned by frequent leadership changes.
ü Apart from other technicalities and statutory requirements by the Central Bank of Nigeria and other Regulatory Agencies, the capitalization sum of N2.5 Billion Naira for one State branch or N5B for a National Branch is required before a Mortgage Bank can be licenced.
ü Considering the interests of the Police in accessing its huge contributions to the NHF, an entirely owned Mortgage Bank is needed to maximally protect the long-term housing initiative for generations of officers/men and even retirees.
ü Options open to the Force included;
- Sourcing for the required fund and floating an entirely new Mortgage Bank.
- Acquiring an existing Bank and recapitalizing it appropriately
- Incorporating a PMI Company with the Corporate Affairs Commission and still undergoing the process of capitalization.
- Of the three options, acquiring an existing PMI was the most cost effective.
BIRTH OF FOKAS
ü FOKAS Savings and Loans Limited (Mortgage Bankers) was an existing Primary Mortgage Institution with equity shares of two hundred and seventy million shares.
ü With technical guidance and following corporate negotiations, the Nigeria Police Cooperative Multipurpose Society Ltd acquired Two Hundred and Fifty Million shares from the total equity shares of the company amounting to 93% of the FOKAS.
ü The acquisition totally places the ownership of FOKAS Savings and Loans Limited (Mortgage Bankers) to the Police Cooperative.
ü Having acquired an existing PMI, what was left was to capitalize the new PMI in line with CBN guidelines.
CAPITALISATION INITIATIVES
· To capitalize the Bank, a private placement offer for the shares of FOKAS Savings and Loans Limited was issued at the rate of N1.10k per share for 2,500,000.000 ordinary shares valued at N1.00 each.
· Sensitization initiatives were initiated with State/Zonal Recapitalization Committees constituted to educate officers and men on the benefits of the scheme which led to subscriptions to the offer by officers and men across all Commands and Formations of the Force.
PRECONDITION FOR LICENCING OF NIGERIA POLICE MORTGAGE BANK
· Opening a Branch in Lagos and Abuja to augment the existing Abeokuta Branch inherited from the acquired FOKAS Savings and Loans
– this has been done
· Reconstitution of the Board of Directors of FOKAS Savings and Loans Bank to reflect its new ownership. This has also been done. The reconstituted Board includes:
- CP Cooperative - Chairman: Funds for the acquisition
was sourced from the
Coop Society
- Mr. Adeloye: MD
- ACP: J.O. Gbenike - Rep Police Budget Dept
- Financial Controller of the Police Cooperative Society
- O/C Police National Housing Fund
- CP Jalingo (Rtd) – Rep Interest of retired Officers
· Increase in the Equity Base of the Rank from initial 500m (FOKAS) t0 N3B.
· Recapitalization of the Bank from its current paid up capital of 500m to 2.5B for one branch or N5b for a Mortgage Bank with National branches.
All these conditions have been fulfilled except the capitalization of the Bank.
RECAPITALISATION OPTION – FULL OWNERSHIP BY ALL POLICE
OFFICERS VIA SUBSCRIPTION TO SHARE ACQUISITION
· The package for all officers to be part owners of the Police Mortgage Bank is a well-thought out Retirement Plan to enable every officer access the Housing Loan and acquire a home of his own.
· The Package requires inpidual officer’s minimal subscription for 10,000 ordinary shares of the Fokas Savings and Loans limited (Mortgage Bankers) which is now the property of the Nigeria Police Cooperative Society.
· Total cost of minimal subscription is put at N11, 000.00 only, payable in two installments of N5, 500.00 each, at the rate of N1.10K per share.
· Process automatically guarantees part-ownership of the bank by every serving Police officer.
· Subsequently willing officers are at liberty to increase their subscriptions.
· Subscription forms are on distribution across all Commands and Formations of the Force to enable Officers appropriately regularize the minimal subscription already deducted and harmonize earlier subscriptions.
· A task force has equally been constituted to ensure fast and early issuance of share certificates to all subscribing officers
HOW WILL THE BANK OPERATE TO BENEFIT OFFICERS IN CONJUNCTION WITH THE NATIONAL HOUSING FUND
· Every contributor to the NHF is entitled to a Mortgage loan of N15m to build, purchase or renovate homes within a maximum repayment period of 30years.
· Such a mortgage Loan attracts a minimum interest of 6% and maximum of 8% per annum throughout the loan tenure which translates into affordable monthly loan servicing deductions for the beneficiary.
· No additional collateral is required to obtain the loan as the home for which the loan is obtained serves as collateral.
· Inpidual Police Officers can on their own, through the Police Mortgage Bank, easily obtain the stipulated loan from the National Housing Fund.
· The Bank may also engage in housing initiatives on behalf of the Officers and deliver finished houses to respective Officers at various locations, utilizing the loans accessed on their behalf from the Federal Mortgage Bank.
BENEFITS OF THE POLICE MORTGAGE BANK
· Repayment of loans may be structured throughout the remaining part of an Officer’s career and even after retirement.
· Upon death/incapacitation, dependents of an Officer will never lose their homes as the bank will accommodate convenient repayment plans by the deceased officer’s family.
· Being the highest contributors to the NHF, accumulated contributions of officers can easily be accessed to develop several hundreds of homes simultaneously at different locations, for officers and men of the Force.
· Retiring officers needing a refund of their total contributions to the NHF and who did not obtain any loans or benefit from the housing scheme can easily, through the Police Mortgage Bank, recover such entitlements in line with the provisions of the NHF Act.
· The initiative guarantees a comfortable home for every Officer of the Nigeria Police Force with results for this within the next one year and continuously after.
· The initiative will help solve the accommodation needs of Police Officers and men.
· The initiative will cater for all personnel of the Force irrespective of rank and has been packaged to give priority attention to members of the Rank and File who are considered more vulnerable in terms of Housing needs.
· The funds derivable from the Capitalisation initiative will enable the recapitalization of the Police Mortgage Bank on a National Mortgage status.
· On payment of the stipulated capitalization sum to the Central Bank of Nigeria, the name FOKAS Savings and Loans Limited will be reverted to the Nigeria Police Savings and Loans Limited (Mortgage Bankers).
· The initiative is a perfect Retirement Settlement Plan
· The initiative will help combat corrupt tendencies within the Force.
PROCEDURES FOR ACCESSING FEDERAL MORTGAGE BANK OF NIGERIA LOAN THROUGH THE NIGERIA POLICE SAVINGS AND LOANS LTD (MORTGAGE BANKERS)
· Applicant must be a contributor to the NHF for a minimum of six months (All Policemen are)
· Applicant must have satisfactory evidence of regular flow of income to guarantee repayment (all Policemen have)
· Applicant must have 3 years tax clearance at the time of requiring the loan (Obtainable)
· Three months pay slip (Obtainable)
· FMBN (NHF) updated passbook – photocopy - (Obtainable)
· Letter of offer/letter of acceptance if applicant is purchasing property or land from a developer or inpidual
· Age declaration and other minor requirements which the Police NHF office can help every interested Police Officer to obtain.
Let it be remembered that:
· Every Police Officer irrespective of Rank is entitled to a Loan of up to N15m at a single digit interest rate not exceeding 8% and repayable over a maximum period of 30 years, to build his own house, renovate his property, purchase a piece of land and purchase a house either independently or through the Police Housing Scheme.
· Therefore the opportunity is equal and available to every Police Officer no matter his rank.
· The minimal subscription of FOKAS shares for which N11,000.00 is being deducted, is also across all Ranks including the IGP, DIGs, AIGs and CPs down to the last Constable.
· Every Police Officer is therefore a part owner of the Police Mortgage Bank and will be issued share certificates for the minimal subscription as well as for additional subscriptions.
· It is therefore not true that the deductions affect only members of the Rank and File.
NOW THE QUESTION IS:
· Is it wise for Police Officers to continue contributing to the National Housing Fund without benefiting from it?
· Should we lose the whooping sum of N8billion jointly contributed by all of us to the Federal Mortgage Bank of Nigeria?
· Should we lose and continue to lose the immense benefits inherent in having a Police Mortgage Bank through minimal subscription and acquisition of shares by all Officers with just N11,000.00 each?
· Do Police Officers and men not deserve to have their own Houses?
These are the questions the IGP and his Management Team have considered and which led to the steps being taken to improve the welfare of All Police Officers.
This initiative is a dream come true for personnel of the Nigeria Police Force especially members of the Rank and File. Imagine owning a house of your own just by subscribing to the Police Mortgage Bank. Today, we all make the commitments to be part-owners of the bank… tomorrow, we shall live in our homes!
Be wise Officers, invest in your future today and Put a roof over your Head!
Welcome to the Nigeria Police Savings and Loans Limited (Mortgage Bankers).
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