The Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, stated that the bank does not have the financial resources necessary to effectively address the nation’s growing housing deficit.
Osidi made this announcement during a briefing with the House of Representatives Committee on Housing and Habitat, headed by Hon. Abdulmumin Jibrin, during an oversight visit to the FMBN headquarters in Abuja.
He emphasised the funding challenges, explaining that the financial requirements to meet Nigeria’s housing needs are substantial.
“At an average of 10 million naira per house, constructing a 500-unit housing estate in each of the 36 states would cost 180 billion naira. Even then, it would not be enough to close the gap. Our major challenge in addressing the housing deficit is funding,” he said.
Osidi described the lack of adequate funding as a critical barrier to closing the housing deficit, and addressed concerns regarding access to contributions made to the National Housing Fund (NHF).
He stated that civil servants could apply for refunds of their contributions upon retirement or exit from the scheme and assured that processing times have been shortened.
“Previously, contributors could access their refunds within three months of exiting the scheme. Under the current administration, the timeline has been reduced to one month,” he said.
Osidi also outlined the primary funding sources and mandates of the FMBN.
He stated that the NHF, established by the NHF Act of 1992, serves as a pool of long-term funds for housing finance.
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According to him, contributions include 2.5% monthly savings by Nigerian workers earning ₦3,000 and above annually; 10% investment in loan portfolios by commercial banks, and 40% and 20% investments by life and non-life insurance companies, respectively.
He explained that as the apex government-sponsored housing finance institution, the FMBN mobilizes long-term funds to provide affordable mortgages and construction loans for low- and middle-income Nigerians.
Osidi also emphasised the bank’s role in linking the mortgage finance market with capital markets and promoting primary mortgage banks to support housing delivery.
He expressed gratitude to the lawmakers for their commitment to Nigeria’s housing sector. “Your visit underscores your dedication to effective oversight and governance in advancing housing development goals.
“We deeply value this opportunity to engage on the progress, challenges, and opportunities in our operations,” he said.
The MD affirmed the importance of the partnership between the FMBN and the National Assembly, reiterating the bank’s commitment to making homeownership accessible and affordable for millions of Nigerians.