A year of transformation: Osidi’s leadership and FMBN’s journey towards affordable housing

When Shehu Usman Osidi assumed leadership as the Managing Director/Chief Executive of the Federal Mortgage Bank of Nigeria (FMBN) in February 2024, following his appointment by President Bola Ahmed Tinubu, expectations were high. His mandate was clear—to drive institutional reforms, enhance mortgage accessibility, and expand affordable housing solutions for Nigerians. One year into his tenure, FMBN has recorded groundbreaking achievements that underscore the impact of strategic leadership, innovation, and a renewed commitment to excellence.

Strengthening operational performance and financial growth

At the heart of FMBN’s transformation under Osidi is a significant improvement in operational efficiency and financial performance. For the first time in over 30 years, the bank recorded an operational surplus of ₦11.58 billion based on its 2024 management accounts. While this figure may reduce after accounting for impairments, it marks a historic financial turnaround and signals the bank’s commitment to tackling inherited challenges, including high non-performing loans.

FMBN has also intensified efforts to expand the National Housing Fund (NHF) Scheme, with collections increasing by ₦3 billion in 2024, bringing the total to ₦103 billion—a clear indication of growing trust and participation in the scheme. Additionally, employer and employee registrations have surged, further demonstrating the bank’s improved engagement with Nigerian workers and organisations.

Innovative housing solutions and new mortgage products

In line with its mandate to provide innovative housing solutions, FMBN has launched a series of new mortgage products tailored to address diverse homeownership challenges:

Diaspora mortgage loan: A collaboration between FMBN and the Nigerians in Diaspora Commission (NiDCOM) to facilitate real estate investments for Nigerians abroad. With ongoing engagements involving the Central Bank of Nigeria (CBN) and International Money Transfer Operators (IMTOs), the full rollout is expected in Q1 2025.

Rent assistance loan: Designed to ease the financial burden of rent payments for Nigerians, offering flexible, affordable financing for tenants.

Non-interest loan: A Sharia-compliant mortgage product catering to individuals who prefer non-interest financial solutions, particularly those in the low- and middle-income segments.

These strategic product innovations reflect Osidi’s focus on expanding access to mortgage financing and addressing the housing deficit in Nigeria.

Digital transformation and improved service delivery

A major bottleneck in Nigeria’s mortgage system has been the long processing time for loan approvals and disbursements. Recognising this, the Osidi-led administration has prioritised digital transformation, cutting loan processing time to an average of 30 days, provided all documentation is in order.

The introduction of the Core Banking Application has streamlined internal operations, reducing bureaucratic inefficiencies. FMBN has also implemented mystery shopping, a customer service monitoring tool that has enhanced responsiveness to complaints and inquiries, leading to improved customer satisfaction.

Strategic partnerships for greater impact

FMBN’s growth strategy under Osidi has been reinforced by strategic collaborations across the public and private sectors. The bank has engaged with state governments, labour unions, private developers (through REDAN), and international housing finance institutions to expand its reach and mobilise additional resources.

Read also: FMBN reports ₦11.5bn surplus in 2024, targets recapitalisation, loan recovery

Notably, FMBN signed a Memorandum of Agreement (MoA) with the Kano State Government, reintegrating Kano’s civil servants into the NHF Scheme—leaving Oyo State as the only state yet to return. The reactivation of Kano’s participation underscores FMBN’s commitment to broadening mortgage accessibility nationwide.

Additionally, the bank is collaborating with Shelter Afrique Development Bank to develop affordable student housing and is in talks with international partners like the International Union of Housing Finance and the African Alliance for Youth Empowerment to explore new funding models.

Expanding affordable housing and job creation

Osidi’s tenure has also seen a massive scale-up in affordable housing projects. Over the past year, FMBN has financed the completion of 1,044 housing units, with 6,853 more under construction across 106 locations. These projects are not only expanding homeownership opportunities but also contributing to economic growth by generating 171,325 jobs—from architects and engineers to artisans and construction workers.

In support of the Renewed Hope Agenda for Housing, FMBN has provided ₦100 billion in off-taker guarantees for the 3,112 housing units in Karsana, FCT, under the Federal Ministry of Housing and Urban Development. These projects further demonstrate the bank’s commitment to providing homes for Nigerians at all income levels.

Targets for 2025: A bold vision for the future

Building on its achievements, FMBN has set ambitious goals for 2025, including:

Increasing NHF collections to ₦211.33 billion by tapping into the informal sector and diaspora contributions.

Expanding mortgage loan offerings to 4,200 homeownership loans, including 2,500 Rent-to-Own facilities, 1,100 Mortgage Loan Origination products, 400 additional Rent-to-Own facilities, and 200 Diaspora Mortgage Loans.

Funding 15,122 home construction loans focused on large-scale housing developments.

Providing 43,000 housing microloans for renovations, rent assistance, and home improvement.

Recovering ₦93.7 billion in outstanding loans through an aggressive loan recovery drive.

Establishing the National Mortgage Registry to further streamline mortgage processing.

A promising future for FMBN and Nigerian homeowners

Shehu Usman Osidi’s first year as FMBN’s MD/CEO has been nothing short of transformative. His leadership has driven institutional reforms, enhanced operational efficiency, expanded mortgage accessibility, and positioned FMBN as a key player in Nigeria’s housing sector.

With the momentum gained over the past year, FMBN is poised to achieve even greater milestones in 2025. As the bank continues to implement bold reforms and innovative solutions, the dream of homeownership for millions of Nigerians is becoming a reality—one mortgage at a time.