It is the Bank’s prime function. The operation is designed for the FMBN to issue mortgage related debt securities (under FG guarantees and other incentives) to raise capital market funds at low costs for sustained liquidity in both Nigeria’s secondary and primary mortgage markets. Such debt instruments are targeted at institutional investors, pension funds, insurance companies and their life funds, consolidated universal banks, etc.

The funds so raised are channeled by wholesale mortgage on-lending by the Bank at market rate (via secondary mortgage transactions) to end-users particularly home loan originators (PMIs & universal banks) and housing estate developers. The proceeds of the capital market operation are also for funding the Bank’s Mortgage Refinancing Window.

The operation is pursued to also strengthen the primary mortgage market as a platform for the emergence and development of a viable secondary mortgage market in the country.

Our capital market instruments for use now and in future include: