Business
Construction Development Bank To Secure Licence By Dec
Former President of Nigerian Institute of Quantity Surveyors (NIQS), Mr Segun Ajanlekoko, yesterday said the proposed Construction Development Bank would be licensed before the end of December.
Ajanlekoko said in Lagos that establishment of the bank was on course and that construction professionals had not relented in their efforts.
“The establishment of Construction Development Bank has suffered serious setback since it was initiated during the recapitalisation of the banking industry in 2005.
“When we started, licensing of banks was N2 billion and suddenly it was raised to N25 billion, but there will soon be light at the end of the tunnel,” he said.
According to Ajanlekoko, the bank is needed to solve the funding challenges in construction industry and it is to take care of peculiarities of the industry.
“Construction works, either housing or road projects, need long-term funds which start maturing after two years,” he said.
He said that the kind of funding could not be obtained from commercial banks and that there must be a specialised bank to help professionals to achieve their potential.
Ajanlekoko said that raising N25 billion was not an easy task and that had made professionals to bring in other interest groups to ensure the amount was raised.
He said that the issuing house was in the process of rounding- up, adding that by December progress would have been made towards the establishment of the bank.
“We are on course to achieve the threshold and the government and CBN have given us recognition which is the most important,” Ajanlekoko said.
He expressed optimism that once it took off, international funding agencies would be interested to inject funds into the bank.
The establishment of a Construction Development Bank was initiated by the seven professional groups in 2004.
The groups include NIQS, Nigerian Institute of Building (NIOB), Nigerian Society of Engineers (NSE), Nigerian Institute of Town Planners (NITP) and Nigerian Institute of Architects (NIA).
Others are Nigerian Institution of Surveyors and Nigerians Institution of Estate Surveyors and Valuers (NIESV).