The Lagos State Government under the administration of Governor Ambode pledged his commitment in building institutions and human capital development in the state.
The Lagos Building Investment Company (LBIC) has suffered financial shortage for many years but the Lagos State Government has agreed to inject the sum of N1bn into the company for it to meet the minimum capital required by the existing law to remain and float in business operation as a primary mortgage bank in the state.
Mr. Folasade Folivi, Managing Director and Chief Executive Officer of Lagos Building Investment Company (LBIC), unveiled the mask, disclosed the support of the state government to inject the N1bn into the company on Friday during the company’s Annual General Meeting held in Lagos.
Mr. Folasade Folivi while addressing the participants, investors and shareholders at the company’s Annual General Meeting, stated, “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.”
Mr. Folasade Folivi disclosed that the Lagos State Government’s intervention was timely and a lifesaver, that the share capital of the Lagos Building Investment Company (LBIC) had been eroded over the years to the extent that it was now below the minimum capital required by existing law for a primary mortgage bank to kick starts business operation.
She further stated that “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.”