The Federal Mortgage Bank of Nigeria (FMBN) Managing Director, Shehu Usman Osidi, has revealed that the institution lacks the financial capacity to tackle Nigeria’s significant housing deficit.
Speaking during an oversight visit by the House of Representatives Committee on Housing and Habitat, led by Hon. Abdulmumin Jibrin, to the FMBN headquarters in Abuja, Osidi highlighted funding as the bank’s primary challenge.
“At an average of ₦10 million per house, constructing a 500-unit housing estate in each of the 36 states would cost ₦180 billion. Even then, it wouldn’t be enough to close the gap,” he stated.
Osidi pointed to inadequate financing as a critical obstacle to meeting housing needs, despite the bank’s efforts to streamline access to the National Housing Fund (NHF). He noted that civil servants could now access NHF contribution refunds within one month of exiting the scheme, a reduction from the previous three-month timeline.
The MD also detailed the bank’s funding sources, including 2.5% monthly savings by workers earning ₦3,000 or more annually, commercial bank investments, and contributions from life and non-life insurance companies.
Osidi reaffirmed FMBN’s commitment to providing affordable mortgages and construction loans for low- and middle-income Nigerians. He also expressed gratitude to the lawmakers for their support, describing their visit as a testament to their dedication to housing development.
“This engagement is vital for addressing the progress, challenges, and opportunities in our operations,” he added.
