Brief History
CROSPIL is an offshoot of the erstwhile Cross River State Housing Corporation (CRSHC). The period following the Nigeria civil war years 1967- 1970 witnessed the establishment of the Federal Housing Authority and State Housing Corporations across the country by the Federal Government as part of its Reconciliation, Reconstruction and Rehabilitation Programme aimed at resettling people who were displaced by the civil war. Accordingly, a model State Housing Corporation Law was put in place and mandatorily adopted and implemented by all the states of the Federation. In this regard, every state of the Federation statutorily owns and operates a State Housing Corporation or Property Development Company failing which the State will be shut out of both on-shore and off-shore Housing Financing.
Effectively, the defunct Cross River State Housing Corporation was established by the then South Eastern State Government Edict No. 14 of 1969. This was later amended by the South Eastern State Housing Corporations (Amendment) Edict 1972 and the Statutory Corporations (Amendment Provisions Edict 1977 respectively. The edicts spell out the functions, duties, and operations of Corporations alongside the power and control of the Corporations by the Ministry of Works and Transport.
Incorporation of CRS Housing Corporation into a Limited Liability Company.
The Cross River State Housing Corporation was incorporated into a Limited Liability Company with effect from 21st August 1991. By an agreement dated 3rd March 1992 and registered as No 61 at Page 61 in Volume 13 of the Lands Registry, Calabar, the assets and liabilities of the Cross River State Housing Corporation were transferred to the Cross River State Property Development and Investments Limited for a nominal sum of ₦1 (One Naira) only.
The statutory functions of CROSPIL are encapsulated in its Memorandum and Articles of Association. These include the following among others:
To carry on business as a real estate development company in all its ramifications, and in that regard, acquire, design, construct, reconstruct, and maintain estates, residential buildings, shopping complexes, office complexes and warehouses.
To carry on business as an investment company and for that purpose, invest, acquire and hold either in the name of the Company or in that of any nominees, shares, stocks, debentures, bonds, obligations and securities issued or guaranteed by the Company, etc.
CROSPIL is the Special Purpose Vehicle (SPV) of Cross River State Government responsible for Housing Development. The most important function of the Company is that of a custodian of legal instruments in a REGISTRY which documents are to remain in perpetuity and could be required anytime. Several of such documents are subjects of mortgage transactions which are currently running and are potential subjects of litigation.
Share Capital
On inception, CROSPIL had a share capital of ₦10,000,000.00 (Ten Million Naira) only. In 2010, the Company was recapitalized to the tune of ₦400,000,000.00 (Four Hundred Million Naira) only to enable her access the ₦2 Billion Naira loan offer from the Federal Mortgage Bank of Nigeria (FMBN) for the development of Akpabuyo Estate. The share capital of a Company is mandatorily required to meet 25% of the expected loan advance hence, the recapitalization to 400m (Four Hundred Million Naira).
Ownership
On inception the shareholding of CROSPIL was held by Ministry of Finance Incorporated (MOFI) and Equity and Investments Limited. With the liquidation of the latter, the Investment Promotions Bureau which took over the assets and liabilities of Equity and Investments Limited took over the shares of the Company. These two agencies are represented at the CROSPIL Board of Directors in addition to the Chairman and other members appointed by the Governor.
Relationship with Department of Mortgage Finance and Estate Development
In 2008, to fast-track the re-integration of Cross River State Civil Servants into the National Housing Scheme, the Senator Liyel Imoke administration established the Department of Mortgage Finance and Estate Development in the Governor’s Office to drive the process and facilitate the Development of Estates at Akpabuyo and other parts of the State. CROSPIL has continued to function since then with this Department as its Supervising Agency
