Mortgage Bank of Nigeria Partners with Federal Ministry to Deliver 100,000 Affordable Housing Units

The Mortgage Bank of Nigeria (FMBN) has announced its partnership with the Federal Ministry of Housing & Urban Development to drive the Federal Government’s Renewed Hope Housing project, an initiative aimed at delivering 100,000 affordable housing units across all 36 states of the federation.

As part of this effort, FMBN has provided guarantees amounting to N100 billion to real estate developers appointed by the Ministry to ensure the smooth execution of housing construction across the country. This significant financial commitment underscores the bank’s dedication to expanding homeownership opportunities for Nigerians.

One of the key highlights of FMBN’s mortgage offering is its affordability. Unlike the prevailing mortgage rates in the open market, which range from 18% to 25%, the bank’s mortgage loan features a fixed interest rate of just 6%. Additionally, prospective homeowners are required to make a maximum down payment of only 10% of the loan value, with a flexible repayment tenure of up to 30 years.

Commenting on this development, Shehu Usman Osidi, the Managing Director and Chief Executive of FMBN, stated, “It is important to emphasize that the Bank's mortgage loan attracts a fixed rate of 6% compared to 18% - 25% in the open mortgage market, with a maximum down payment of only 10% of the loan value and a repayment tenor of up to 30 years. We are on-boarding a robust Performance Management system that will help us in monitoring, analyzing, and measuring the deliverables we have set for ourselves as staff and for FMBN as an institution.”

The Renewed Hope Housing project aligns with the government’s broader goal of bridging the housing deficit in Nigeria and providing affordable homes for citizens. The partnership between FMBN and the Federal Ministry of Housing & Urban Development is expected to significantly boost real estate development and homeownership in the country.