Federal mortgage bank of Nigeria Proposes Housing Loan Program for University Staff and Students
The Federal Mortgage Bank of Nigeria (FMBN) has announced plans to finance the construction of student hostels and staff quarters for university workers, enabling them to benefit from its loan scheme. FMBN's Managing Director, Shehu Osidi, shared this information during the 2024 FMBN Management Retreat on Monday.
Osidi revealed that FMBN is finalizing arrangements to sign a Memorandum of Understanding (MoU) with Shelter Afrique Development Bank as part of the bank’s strategic initiatives. This partnership aims to explore new funding avenues for FMBN’s projects, including rental housing and the development of student hostels.
FMBN, which manages the National Housing Fund (NHF)—a fund contributed by Nigerian workers through a 2.5% salary deduction—plans to extend its reach to university students and staff. Osidi explained that the initiative is designed to introduce students to FMBN's offerings while they are still on campus, as they are future contributors to the NHF. The bank aims to finance the construction of student hostels and staff quarters for university lecturers and non-academic employees through partnerships with universities.
As part of President Bola Tinubu’s Renewed Hope Agenda, driven by the Federal Ministry of Housing and Urban Development, FMBN has also signed an MoU with a consortium of developers under a public-private partnership arrangement. This agreement allows developers to raise funds for housing construction, with FMBN providing a 100 billion naira guarantee to enable these developers to access financing. FMBN will then offer mortgage financing to the beneficiaries of the completed housing projects.
Osidi emphasized that FMBN is committed to building and nurturing partnerships to leverage synergies, access new resources, and expand its reach, ultimately accelerating the delivery of affordable housing across Nigeria. The bank is also focusing on improving service delivery and operational efficiency to better serve its customers. Osidi acknowledged the legacy issues FMBN faces, such as delays in loan approvals, and expressed the new management’s determination to change this narrative.
The retreat provided an opportunity to reflect on FMBN’s progress, identify the challenges hindering its growth, and develop strategies to overcome these obstacles. Osidi urged staff to be innovative, solutions-oriented, and committed to actions that would enhance FMBN’s efficiency and customer service.