The Federal Mortgage Bank of Nigeria (FMBN) recently announced a groundbreaking $100 billion loan facility aimed at financing the Renewed Hope Housing Project across the nation. This significant development was articulated by the Managing Director of FMBN, Shehu Osidi, during a detailed review of the bank’s performance over the past year in Abuja on February 26, 2025.
Osidi explained that the loan facility is designed to facilitate the construction of affordable housing units nationwide, addressing Nigeria’s critical housing deficit. He emphasized the bank’s commitment to ensuring housing accessibility for all Nigerians through strategic funding initiatives. In addition to the broader loan facility, FMBN has allocated direct funding of ₦19.9 billion for a housing project in Karsana, Abuja, and ₦27 billion for a similar project in Ibeju-Lekki, Lagos. Both projects are currently undergoing automation processes to enhance operational efficiency and ensure timely delivery.
During his presentation, Osidi reflected on the bank’s achievements, noting that since the current management took over, several reforms have been implemented to boost efficiency, transparency, and overall impact on the housing sector. He reported a remarkable operational surplus of ₦11.58 billion for the year 2024, marking the first such surplus since the bank’s establishment over three decades ago.
Under the National Housing Fund (NHF) operations, collections grew by ₦3 billion in 2024, reaching a total of ₦103 billion. This increase reflects a strong uptick in participation and trust from Nigerian workers in the NHF scheme. Osidi attributed this growth to renewed confidence in the bank’s management and the effectiveness of its programs aimed at improving housing finance accessibility.
Osidi highlighted the importance of collaboration with various stakeholders, including employer organizations. In 2024, FMBN registered 658 employer organizations and 178,619 employees, a significant increase from the previous year. This surge can be partly attributed to the reintegration of Kano State civil servants back into the NHF after a 24-year absence from the scheme.
Looking ahead, Osidi shared the bank’s strategic direction for 2025, which includes further institutional reforms and initiatives to enhance financial sustainability. He stressed the need to optimize operational costs and improve revenue generation to ensure that the bank can continue to fulfill its mandate effectively.
In terms of loan operations, FMBN approved a total of ₦71.5 billion in loans over the past year, a notable increase compared to ₦39.75 billion in 2023. Additionally, the bank refunded ₦14.4 billion to 44,333 beneficiaries, an increase from ₦13.2 billion refunded to 40,426 beneficiaries in the previous year.
The resumption of Kano State’s civil servants into the NHF is expected to significantly boost collections in the upcoming year, as the state has a large workforce of over 160,000 civil servants. A Memorandum of Agreement facilitating this reintegration was signed on January 1, 2025.
Osidi’s presentation underscored the FMBN’s commitment to revitalizing Nigeria’s housing sector through robust financial solutions and strategic partnerships. The bank aims to leverage the new loan facility to ensure that affordable housing becomes a reality for many Nigerians, contributing to the overall economic growth and development of the nation. With a focus on transparency and operational efficiency, the FMBN is poised to play a pivotal role in addressing Nigeria’s housing challenges in the years to come.
