The Federal Mortgage Bank of Nigeria (FMBN) has broadened its housing loan portfolio to now include operators in the informal sector, who can access micro-housing loans for various housing projects.
Traditionally focused on mortgage financing, FMBN has expanded its offerings to include housing construction and a rent-to-own product, allowing renters to eventually own the property they live in after paying rent over a specified period.
Shehu Osidi, the bank’s managing director, disclosed this in Abuja, emphasizing the institution’s response to the growing demand for affordable housing financing. FMBN’s clientele has expanded beyond primary mortgage banks to encompass private and public real estate developers.
“Our clientele also includes housing cooperatives and individual NHF contributors for home self-construction. The latest additions to our loan products are the Home Improvement and Rent Assistance loans, which are micro-housing loans specifically intended for, but not exclusive to, the non-salaried informal sector,” Osidi explained.
Osidi made these remarks at the Africa International Housing Show (AIHS), themed ‘Financing the Housing We Need,’ where he delivered a keynote address titled ‘New Dawn at FMBN.’
Expanding Access to Housing Finance
FMBN’s latest initiatives aim to address Nigeria’s severe housing deficit, which Vice President Kashim Shettima estimated at a N21 trillion finance gap. According to a 2018 PwC survey, over 75% of Nigeria’s 42 million housing units do not meet UN Habitat standards.
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The same report estimated the value of ‘dead capital’—unrealised earnings from underutilized housing assets—at approximately US$300 billion, equating to 60% of the national GDP.
Despite these challenges, Osidi noted that FMBN has consistently met the housing needs of Nigerians within its resource limits. Since its re-establishment in 1993, the bank has delivered about 39,000 new homes, provided around 25,500 mortgages, and issued over 120,000 micro-housing loans, all at single-digit interest rates.
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Under the National Housing Fund (NHF) Scheme, FMBN has registered 26,350 organizations and over 5.8 million cumulative contributors, with over one million self-employed contributors. The bank has disbursed N440 billion through various loan windows to support affordable housing finance.
Commitment to Transformation and Future Goals
Osidi assured stakeholders of the current executive management’s commitment to transforming FMBN into a more responsive institution that fulfills its promises. Upon assuming office in February, the new management unveiled a seven-point agenda aimed at positioning the bank for future growth and efficiency.
“Accordingly, after careful and critical examination of the bank and where it needs to be in the nearest future, the new executive management unveiled a seven-point agenda on assumption of office in February this year,” he said.
The agenda aims to align FMBN’s operations with the aspirations of its stakeholders, including shareholders, contributors, loan beneficiaries, regulators, partners, and staff.