The Managing Director/Chief Executive of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, has emphasized the bank’s achievements in implementing the Public-Private Partnership (PPP) housing model, which has contributed to the sustainable growth of both the bank and the housing sector.
Osidi made these remarks during a panel session at the Renewed Hope Housing PPP Summit held on March 17, 2025, at the Shehu Musa Yar’adua Centre in Abuja. He discussed the topic “Financing Housing PPP” and underscored the importance of the PPP model as an effective means of financing housing in Nigeria.
He revealed that FMBN had embraced the PPP initiative earlier, developing products tailored to its specifications to ensure that the financed houses remained affordable for low- and middle-income earners. This approach led to the creation of the Estate Development Loan (EDL) model, allowing developers to partner with the bank for construction funding, with mortgage financing provided for buyers once homes were completed.
To address challenges related to off-take from the EDL, FMBN introduced the Cooperative Housing Development Loan (CHDL). Moreover, to enhance affordability—which Osidi identified as dependent on both cost and income—the bank launched the Individual Construction Loan (ICL) and the Bankable Off-taker Guarantee. This guarantee provides developers with funding for housing development, adhering to specific designs and locations, which the bank then packages for beneficiaries.
Osidi noted that FMBN is supporting the Renewed Hope Housing Programme, spearheaded by the Ministry of Housing and Urban Development, with a substantial allocation of N100 billion. Additionally, the bank is directly funding the Karsana Housing Project with N19.9 billion and the Renewed Hope Housing Project in Ibeju-Lekki with N27 billion.
Highlighting FMBN’s success with PPP models, Osidi stated that the bank serves as a model of effective public-private collaboration. He stressed the importance of accountability and affordability in successful PPP execution, asserting that if any party fails to fulfill its role, the project is likely to fail.
Osidi encouraged the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to learn from FMBN’s experiences, particularly regarding collaborations with state governments. He pointed out that projects often falter when governments do not deliver on agreed infrastructure, even when FMBN has met its obligations.
The summit, themed “Leveraging PPPs for Housing and Urban Development,” brought together stakeholders from government, private sectors, and traditional leaders, all united in the goal of fostering sustainable growth and transformation in Nigeria’s housing sector through innovative public-private partnerships.
