The Nation Newspaper

Tag: Federal Mortgage Bank of Nigeria (FMBN)

  • FMBN seeks N500 billion recapitalisation

    FMBN seeks N500 billion recapitalisation

    The Federal Mortgage Bank of Nigeria (FMBN) has posted an unprecedented operational surplus of N11.58 billion, marking a major financial turnaround in its 30-year history.

    Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, disclosed this in Abuja while reviewing the bank’s performance under its current leadership.

    He attributed the surplus to prudent financial management, cost-efficiency measures, and a stronger balance sheet, though adjustments for impairments are expected.

    “These efforts have resulted in an operational surplus of N11.58 billion from our Management Accounts for 2024. This is the first such experience since FMBN came into existence over 30 years ago,” he stated.

    He further revealed that FMBN is pursuing a N500 billion recapitalisation plan, with N250 billion from the Federal Government and the remainder through debt capital to sustain its growth.

    According to him:” FMBN intends to seek the cooperation of Stakeholders as directed by FEC for necessary action towards attaining the recapitalisation target of the Bank to the tune of the minimum of N500 billion.

    This is critical and central to the effective delivery of our mandate.

    “A proposal has been submitted to the Federal Executive Council (FEC), which has directed further engagements with key financial institutions.”

    Read Also: Turkish Airlines holiday expands globally

    He noted that the bank’s National Housing Fund (NHF) contributions rose to N103 billion, fueled by increased compliance and the reentry of Kano State after a 24-year absence.

    “Mortgage approvals also surged to N71.5 billion in 2024, nearly doubling the previous year’s figures. Meanwhile, aggressive loan recovery efforts have yielded N10.9 billion from non-performing loans, in addition to regular recoveries of N3.1 billion.

    “FMBN is also backing the Renewed Hope Housing Program, providing a N100 billion Off-Takers’ Guarantee and significant project funding for Karsana, Abuja (N19.9 billion) and Ibeju Lekki, Lagos (N27 billion).

    “To further strengthen its operations, the bank plans to expand its branch network, automate NHF contributions, introduce new mortgage products, and push for key policy reforms,” Osidi revealed.

    He further reaffirmed FMBN’s commitment to transparency, efficiency, and affordable housing finance, positioning it as a driving force in Nigeria’s real estate sector.

  • FMBN restates commitment to affordable housing

    FMBN restates commitment to affordable housing

    The Federal Mortgage Bank of Nigeria (FMBN) has reiterated its commitment to deepening the housing finance and mortgage sector to enhance homeownership and reduce the country’s housing deficit.

    Speaking at the 46th Kaduna International Trade Fair, the Managing Director/Chief Executive of FMBN, Shehu Usman Osidi, emphasized the critical role of trade fairs in driving economic development and fostering innovation.

    Represented on the occasion by the Executive Director of Loans and Mortgages, Dr. Sani Muhammad Sani Abdu, the CEP commended the Kaduna Chamber of Commerce, Industry, Mines & Agriculture (KADCCIMA) for organizing the fair, describing it as a vital platform for networking, business growth, and national development.

    Osidi highlighted FMBN’s recent initiatives to improve mortgage accessibility, including the upward review of the National Housing Fund (NHF) mortgage loan ceiling from N15 million to N50 million to cater to high-income earners.

    Read Also: Abdulrazaq flags off Kwara agro input fair, recommits to food security

    He noted that this adjustment had sparked renewed interest in the NHF scheme, with requests being promptly addressed.

    The FMBN boss also reiterated that the bank remains the only institution offering single-digit mortgage rates between six per cent and seven per cent through products such as the Individual NHF Loan, Individual NHF Construction Loan, Home Renovation Loan, and Rent-to-Own scheme.

    Despite inflationary pressures, Osidi assured that FMBN would continue developing affordable mortgage products to ensure more Nigerians achieve homeownership.

    The Kaduna International Trade Fair, an annual event, serves as a platform for businesses, industries, and key stakeholders, including those in the housing sector, to showcase products, foster partnerships, and drive economic growth.

  • FMBN plans 3000 rent-to-own housing units

    THE Federal Mortgage Bank of Nigeria (FMBN) will soon kick start the construction of 3000 housing units under its rent-to-own pilot scheme at its existing estates nationwide.

    The Managing Director/Chief Executive Officer of the FMBN, Arc. Musa Dangiwa, disclosed this in Abuja when he received the management of the Federal Roads Maintenance Agency (FERMA) led by its Managing Director, Engr. Nurudeen Rafindadi, who were at its headquarters on a courtesy call.

    Dangiwa lamented that the agency has discovered that houses built by developers were too expensive and therefore has created cooperatives to facilitate home ownership across the country.

    He said the agency is ready to work with the FERMA authorities in resolving the housing needs of its staff who are contributors to the National Housing Fund (NHF).

    He urged the staff of FERMA to key into FMBN’s products to own homes, “since every Nigerian deserves good shelter.”

    He said that its strategic partnership with FERMA would be geared towards creating affordable mortgage finance for its staff and pledged to assist the workers in realising their dream of owning befitting houses.

    Read Also: LASG, firm partner on 750 housing units

    The FMBN boss said that the bank decided to automate its processes and give NHF contributors unfettered access to information about their contributions and policies associated with the scheme for greater transparency, accountability and service delivery.

    Dangiwa further said that the bank has adopted innovative technologies that would bring its services to the doorstep of contributors through the unveiling of *219# USSD short code, mobile apps for android and iOS platforms, online self-service kiosk, Short Message Service (SMS) and email notifications.

    He appealed to workers in the organised private sector and self-employed individuals who are yet to join the scheme to urgently register and commence contribution of 2.5 per cent of their monthly income.

    Earlier, the Managing Director of FERMA, Engr. Nurudeen Rafindadi, said that the visit was meant to build synergy between the two agencies and also to brainstorm on how the FMBN can assist FERMA staff to own houses in an affordable manner.

    The FERMA boss commended the management of FMBN for the giant strides the bank has recorded, especially the introduction of innovative technologies to boost their services.

     

  • FMBN issues 2,724 mortgages worth N20.237bn – Fashola

    FMBN issues 2,724 mortgages worth N20.237bn – Fashola

    The Minister of Power, Works and Housing, Babatunde Fashola said that since 2015 to date, the Federal Mortgage Bank of Nigeria ( FMBN ) had issued 2,724 mortgages to Nigerians.

    Fashola disclosed this while inaugurating the respective Governing Boards of the Federal Housing Authority (FHA) and FMBN on Thursday in Abuja.

    The minister noted that the mortgages which were issued under the National Housing Fund (NHF) scheme were worth N20.237 billion.

    He said the ministry was piloting a National Housing Programme and constructing houses in 33 states to ensure more Nigerians own homes.

    “We are doing this to validate and test what type of housing design responds to Nigeria’s diverse cultural, climatic and religious needs, so as to ascertain what is acceptable and affordable.

    “We are at different stages of construction in different states, and we have recommended these designs to FHA, without imposing them.

    “Our decision is informed by the evidence of previous housing initiatives that people did not take up resulting in empty houses that still abound in almost every state of Nigeria,’’ he said.

    The minister explained that the untaken houses in spite of housing deficit suggested that they were not affordable or acceptable to the people.

    He urged the newly inaugurated member of the boards to reposition their brands and provide guidance for the Managing Directors and Management teams of the orgaisations.

    “For the avoidance of doubt, let me state that the policy of government is to deliver affordable housing, acceptable to Nigerians.

    “The agencies, whose brands you will now administer are the implementing arms of government for housing delivery and housing financing.

    “You must, therefore, use your positions to affect the lives of millions of people who will partake and benefit of the prosperity that a housing economy can offer,’’ he said.

    In response, the FHA board Chairman, Sen. Lawal Shuaibu promised to employ collective efforts to reposition the housing sector.

    Shuaibu assured that national housing policy would be effectively implemented.

    Also speaking, Mr Adewale Adeeyo, FMBN board Chairman commended the laudable programmes of the ministry aimed at raising the standard of Nigerians.

    Adeeyo pledged that the FMBN board would make a monumental impact through provision of affordable mortgages to Nigerians.

    NAN

  • FMBN supports Borno to rehabilitate houses destroyed by insurgents

    FMBN supports Borno to rehabilitate houses destroyed by insurgents

    The Federal Mortgage Bank of Nigeria ( FMBN ) said on Tuesday that it would support the government and people of Borno towards the rehabilitation of houses destroyed by insurgents in the state.

    Mr Ahmed Dangiwa, FMBN Managing Director disclosed this in Abuja during FMBN cheque presentation to beneficiaries of its Home Renovation Loan in Government House, Maiduguri, Borno.

    Dangiwa in a statement in Abuja called on the people of the state to take advantage of the privilege, especially the home renovation loan for the reconstruction of their houses destroyed by Boko Haram insurgency.

    The FMBN boss said that Borno was one of the states that urgently needed the loan to enable the people affected by the insurgency return to their houses.

    He assured the Borno government of the bank’s continued support in tackling its housing problems and also expressed satisfaction with the achievements recorded by the state despite the daunting challenge of insecurity.

    Responding, Gov. Kashim Shettima of Borno expressed appreciation for the bank’s readiness to support the state towards the rehabilitation of houses destroyed by insurgents.

    He said the state has already embarked on rehabilitation and rebuilding of houses destroyed by Boko Haram in an effort to bringing back displaced persons to their houses.

    Shetima called on the bank to come to its aid by building houses in Biu, Bama and Monguno to reduce the housing deficit in the areas.

    The governor also appealed to the bank to consider local contractors in the state while giving out jobs for housing construction.

    Not less than 81 employees in the state got one million naira each from the FMBN Home Renovation Loan.

    The bank also presented of food items to the State Government for the Internally Displaced Persons ( IDPs ) as the bank’s contribution towards improving the living conditions of the IDPs.

    NAN

  • FMBN lauds CBN on data bank for Housing sector

    FMBN lauds CBN on data bank for Housing sector

    The Federal Mortgage Bank of Nigeria (FMBN) has commended the Central Bank of Nigeria (CBN) and Real Estate Development Association of Nigeria (REDAN) for initiating a programme on provision of accurate and reliable data on the housing sector.

    FMBN Managing Director, Arc. Ahmed Musa Dangiwa, at stakeholders’ conference Tuesday, in Abuja said the National Real Estate Data Collation & Management Programme (NRE-DCMP) would address dearth of reliable and conflicting data in the industry.

    He explained that such programme was part of efforts to develop the sector and provide affordable homes.

    Dangiwa, who was represented by the bank Executive Director, Finance and Corporate Services in the Bank Mr. Melville Ebo expressed concern emphasised the urgent need to critically look inward and device various means of harmonising data collation in the country.

    Speaking on the bank’s efforts on alternative sources of funding, he restated the Bank’s commitment to providing affordable financing for homes ownership in line with provisions of the National Housing Fund (NHF).

    According to him, the Bank has put in place a range of products that include NHF Mortgage Loans to finance affordable homeownership, FMBN housing cooperative loan product which is more amenable to overcome the credit difficulties faced by the non-salaried, informal sector; and home renovation loan, for the renovation or expansion of  houses.

    Dangiwa noted that the supports were in addition to construction finance loan windows via estate developments and the Ministerial Pilot Housing Scheme run in conjunction with the Bank’s supervisory Ministry, to boost the supply of houses for mortgage creation.

    “This programme is closely tied to business focus of the Bank in addressing the housing needs of the low and medium income market segment,” he said adding that, “to drive homeownership amongst the low and medium income market segment, the Bank has financed the construction of about 20,000 housing units nationwide as it has also granted more than 20,000 mortgage loans to date. The Bank equally registered 21,320 contributors through 1,078 cooperative societies, as a strategy to integrate the non-salaried/informal sector into the Nigerian financial services, with the ultimate goal of doubling its NHF customer base in the medium term.”

  • UniAbuja to get FMBN 200 housing units in November   

    UniAbuja to get FMBN 200 housing units in November   

    The Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Arch. Ahmed Musa Dangiwa has said staffs of the University of Abuja will benefit from 200 units of houses funded by the bank through the Federal Government Ministerial Pilot Housing Scheme.

    The Bank’s MD said the units of three, two and one bedroom apartments, constructed by Anthem Integrated Resources Limited would be delivered to the beneficiaries by November this year.      

    The beneficiaries are senior staff of the varsity under the aegis of Abuja Senior Staff Cooperative Society.

    In a statement signed by FMBN Unit Head, Public Affairs and Corporate Communications, Ahmed Kaoje, yesterday in Abuja, the inspection visit by the MD was part of efforts at completing all on-going housing projects funded by the Bank    

    It reads in part: “What is interesting about the project is that off-takers are on ground, who are staff members of University of Abuja under the cooperative society. He expressed satisfaction with the quality and level of work in the estate and directed the developer to complete the houses by November this year for subsequent mortgaging to the university community.”

    Dangiwa urged the public to take advantage of the National Housing Fund (NHF) scheme to own their houses. According to him, the scheme is open to all Nigerians and is the most affordable mortgage facility in the country.

    He reiterated the commitment of the Bank to deliver on its mandate of providing quality and affordable housing to low and medium income earners.

    In his remarks, FMBN Executive Director, Business Development and Treasury Services, Alhaji Umar Abdullah called on the developer to maintain high standard of work and deliver the houses on record time.

    The President of University of Abuja Senior Staff Cooperative Society represented by the Financial Secretary Mr. Samuel Osagie, expressed appreciation to the Bank for locating the project at Gwagwalada and for giving the staff of the university opportunity to own the houses.

    He confirmed that the cooperative has begun the profiling of interested members to enable them access the houses.

    The Project Consultant, Alhaji Mukhtar Abdullahi assured the Bank that the firm would keep to the completion time and maintained the project is of high quality standard.  

  • FEC working to clear backlogs of Civil Servants salary arrears – HoS 

    FEC working to clear backlogs of Civil Servants salary arrears – HoS 

    Head of Service (HoS) of the Federation, Mrs. Winifred Ina-Eta has disclosed that the Federal Government has commenced plans to pay all outstanding salaries of federal civil servants in the country.

    She said the move has reached an advanced stage with the intervention of the Federal Executive Council (FEC).

    She spoke at the event organized by the Federal Mortgage Bank of Nigeria (FMBN) as part of ongoing programmes set to mark the 2017 African Public Service Week in Abuja.

    “We are working very hard with relevant government agencies for the release of all outstanding allowances and related benefits due to civil servants.

    “I am sure you recall that FEC approved a matchup plan for the Federal Ministry of Finance to source funds specially for clearing the whole backlog of our salary arrears and promotion arrears. So very soon, this will commence.”

    Speaking on the loan disbursement, she explained that beneficiaries should have at least five years to serve in the civil service and should be contributor to the National Housing Fund.
    She said over N1.166b has so far been released to the Federal Government Staff Housing Loan Board (FGSHLB) for the benefits of the people.

    Ina-Eta identified partnership as vital to ensuring that the civil servants enjoy certain benefits before retirement from the service.

    She stressed importance of alternative strategies to developing and providing affordable housing as practiced abroad, adding that the federal government cannot solely fund mass housing programme.

    “We want to see different agencies working together in government for the progress and improvement we are all yearning for.”

    She called for sustenance of the programme, adding that the initiative was designed to rehabilitee homes of civil servants The Federal Mortgage Bank of Nigeria (FMBN) earlier released public
    service renovation loans in partnership with the FGSHLB to the beneficiaries.

  • NHF: Council chairman tasks FMBN to ensure effective enlightenment programme

    Malam Musa Dikko, Chairman, Bwari Area Council, FCT has urged the Federal Mortgage Bank of Nigeria (FMBN) to embark on effective enlightenment programme to improve the National Housing Fund (NHF) scheme.

    Dikko told the News Agency of Nigeria (NAN) in Abuja on Tuesday, that the bank needed to do more sensitisation on the scheme, especially on its Home Renovation Loan (HRL) programme, for the interest of the contributors.

    NAN reports that the FMBN, FCT branch on March 23, 2017 disbursed N27.6m loan to the first batch of 29 civil servants in the council who benefited from the HRL scheme.

    Another batch of 49 beneficiaries have been approved by the bank but yet to get access the loan.

    Dikko, who described the HRL as a unique programme noted that many people neither took the loan serious nor believed in it at the local council, “maybe because of the antecedent of the past.”

    He, however, urged the staff of the council and others in FCT to see HRL as one that had to do with their future and as such begin to contribute effectively.

    “We want to urge the NHF managers to be more effective, to come out with the programme of enlightenment that will enable others to partake.

    “Members of staff of the council who have endured the pain and process of contributing to the NHF are beneficiaries of the programme.

    The chairman assured that the council would ensure that remittance that had to do with the contribution was done periodically.

    “It has to do with one’s future and should be taken seriously”.

    Dikko noted that there was serious housing deficiency, adding that per cent because only 25 per cent of residents of Bwari area had actually been accommodated as per housing programmes.

    “There is no other reason than linking it to the Master Plan of the FCT.

    “Bwari area council is not in the master plan of mass production of houses or government programmes in terms of mass housing.

    According to him, there is a need for government to commence mass housing in the council which is a gateway to the FCT, so that civil servants can have shelter over their heads.

    The HRL which is specifically designed for NHF contributors who desire to improve existing property, owned by them, is introduced by the FMBN to ensure that more contributors benefit from the scheme.

    The HRL affords Nigerians opportunity to access mortgage loans of N1 million for renovation or improvement of their existing homes.

    NHF scheme was established in 1992 to address the constraints to the mobilisation of long term funds for housing finance and ensure that every Nigerian has access to housing loans.

     

  • TUC lauds FG on 10% housing equity waiver

    The Trade Union Congress (TUC) has commended the Federal Government on waiver of the initial payment of 10 per cent housing equity on mortgages below N5 million from housing offtakers.

    Mr. Bobboi Kaigama, TUC President gave the commendation on Monday in an interview with the News Agency of Nigeria (NAN) in Abuja.

    The Federal Government had recently approved that henceforth mortgages below N5million (five million naira) will not attract the initial payment of 10 per cent equity from offtakers.

    According to him, this is to demonstrate its commitment to the provision of affordable housing to Nigerians, especially the low income earners.

    Bobboi noted that the waiver was a welcome development, especially in this period of economic recession being experienced in the country.

    “The government is using the same fund contributed by workers to build houses for them, if it can as well give out houses at much lower rate it will be nice development because it is workers’ contribution.

    “The Federal Government has no contribution in the fund and the worker’s representatives do not have a say on how the funds are being managed,” he said.

    Commending the effort of the government, he said that it needed to do more in the course of delivering houses to Nigerians.

    The TUC president said that the number of houses that have been delivered to workers since the constitution of the National Housing Fund (NHF) programme was not impressive compared to the percentage of workers contributing to the fund.

    He, however, called for an urgent review of the NHF law, adding that the representatives of Nigerian workers should also be allowed to be on the board of the Federal Mortgage Bank of Nigeria (FMBN).

    According to him, being board members will make the representatives to be able to contribute and moderate the cost of housing units compared to the contributors’ salaries.