President Tinubu’s renewed hope for housing
Upon assuming office, President Bola Ahmed Tinubu emphasised affordable housing as a key priority through his Renewed Hope Agenda. His strategic actions, such as demerging the Ministry of Works and Housing to form a new Ministry of Housing and Urban Development, demonstrate his commitment to making housing a right for all Nigerians.
The appointment of Arc. Ahmed Musa Dangiwa as Minister and Abdullahi Tijjani Gwarzo as Minister of State signalled a renewed focus on increasing the capacity of federal housing agencies, including the Federal Mortgage Bank of Nigeria (FMBN). This agency plays a crucial role in the sector’s reforms under the leadership of Dangiwa, who called for innovation to tackle housing challenges, despite rising construction costs and low incomes.
Federal Mortgage Bank’s new leadership
Recognising FMBN’s importance, President Tinubu approved a leadership change in February 2024, appointing Shehu Usman Osidi and three other experts to revamp the institution. Osidi, with over 30 years of experience in the banking and housing sectors, was tasked with reforming the bank’s operations. He was joined by Ibidapo Odijukan as Executive Director of Finance and Corporate Services, Dr. Muhammad Sani Abdu as Executive Director of Loans and Mortgage Services, and Chinenye Chinedu Anosike as Executive Director of Business Development and Portfolio Management.
This new leadership team brings a wealth of experience to FMBN, with Odijukan noted for his transformational leadership, Dr. Abdu contributed decades of housing policy expertise, and Chinedu specialised in marketing, people development, and business strategy.
FMBN’s 7-Point Agenda
In March 2024, the new executive team introduced a 7-Point Agenda designed to guide FMBN’s operations and achieve the government’s housing goals. The agenda emphasises deepening process automation, promoting cost efficiency, enhancing credit quality, improving project management, expanding partnerships, strengthening performance management systems, and standardising capacity building.
This ambitious plan aims to make housing more accessible and affordable for Nigerians, particularly those in the medium- and low-income brackets. The agenda also pushes for a transition to digital platforms to streamline application processes, reduce bureaucracy, and improve transparency.
Progress under new management
Since Osidi’s appointment, FMBN has made significant strides. In May 2024, the bank disbursed N236.9 million in Home Renovation Loans to 299 Kano State civil servants. In the first quarter of the year, FMBN disbursed a total of N9.92 billion in loans, bringing its cumulative loan amount to N435.794 billion. Additionally, 12,915 retirees received National Housing Fund (NHF) refunds totaling N4.428 billion during the same period, demonstrating the new management’s commitment to the housing agenda.
FMBN also committed N100 billion in off-taker guarantees for the Federal Government’s Renewed Hope Cities and Estate Programme, providing mortgage loans and Rent-to-Own facilities to qualified contributors.
Read also: FMBN widens housing financing net with micro loans for informal sector
Introducing the diaspora mortgage loan
A major initiative introduced by the new leadership is the Diaspora Mortgage Loan Product, which aims to include Nigerians living abroad in the NHF scheme. With this product, diaspora Nigerians can access mortgage loans of up to N50 million at an interest rate of 9 percent per annum, enabling them to own homes in Nigeria.
Rental assistance loan product
FMBN also introduced the Rental Assistance Loan Product to help Nigerians who cannot afford to own homes but still require rental assistance. This product allows contributors to borrow up to N2 million annually to pay their rent, with repayments spread over a year. This innovative loan is aimed at easing the financial burden of rent for informal sector workers.
Strategic collaborations
FMBN is actively expanding its partnerships with local and international organisations to fulfil its mandate. Partnerships with institutions such as Shelter Afrique Development Bank and state governments have been initiated to align with the Federal Government’s housing vision. The bank also collaborates with Kaduna State University and the Federal Housing Authority to advance housing delivery. Additionally, FMBN is working with the Nigerians in Diaspora Commission (NiDCOM) to promote the Diaspora Mortgage Scheme, providing housing opportunities for Nigerians abroad.
A bright future for housing
The Tinubu administration’s reforms, spearheaded by FMBN’s new management, offer a promising future for Nigeria’s housing sector. With a focus on providing affordable homes, addressing the housing deficit, and improving the quality of life for Nigerians, particularly those in the lower-income brackets, there is growing optimism that the challenges facing the sector will be overcome.
FMBN’s alignment with President Tinubu’s Renewed Hope Agenda signals a new dawn in Nigeria’s housing delivery. The ongoing reforms suggest that the era of underdevelopment in the housing sector may finally be coming to an end, with more Nigerians on the path to homeownership and better living conditions.
Richard Imhoagene is a housing policy analyst based in Abuja.
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