Assessing FMBN’s Mortgage 

Banking Digitisation Efforts

In a rapidly changing banking environment, the Federal Mortgage Bank of Nigeria (FMBN) has embarked on a wide-ranging digitisation initiative aimed at improving efficiency, transparency, and accessibility in mortgage service delivery, writes Emmanuel Addeh

With a significant shift from the traditional, paper-heavy processes that had long hindered the speed and reliability of mortgage operations in the country, the FMBN has recently begun positioning itself to serve its customers better, aligning Nigeria’s mortgage infrastructure with global best practices. 

These efforts come when housing deficits and access to affordable financing remain pressing challenges for millions of Nigerians. For decades, the mortgage application and disbursement process under the bank was marked by bureaucratic delays and limited access to information for prospective homeowners. 

However, things appear to be changing. By embracing digitisation, the bank aims to eliminate these inefficiencies, reduce turnaround times, and build a system that is both user-friendly and accountable.

Going beyond operational improvements, the digitisation push by the Usman Osidi-led organisation is also seen as a step toward rebuilding public confidence in government-led housing schemes by making processes more transparent and accessible.

Since taking office on February 19, 2024, days after its appointment by President Bola Tinubu on February 15, the management of the mortgage bank appears to have hit the ground running, launching what it described as a transformative seven-point agenda. Osidi says this is aimed at repositioning FMBN as a modern, efficient, and accessible mortgage institution. 

At the heart of this agenda has been the efforts at ‘deepening process automation’, a commitment that has led to the development and rollout of a robust Internet banking platform by the foremost mortgage institution.

This innovation allows National Housing Fund (NHF) contributors to seamlessly register, make contributions, apply for mortgage loans, monitor repayment progress, and request refunds from any location and at any time. All that is required is a digital device and an available internet.

According to the bank, FMBN’s digital transformation over this period has not just been about upgrading technology, it is about empowering citizens, enhancing trust, and breaking down long-standing barriers to homeownership. 

By digitising its operations, FMBN points out that it has made it easier for low and middle-income earners, particularly those in the informal sector, who make up over 80 per cent of the nation’s population, to participate fully in Nigeria’s housing finance ecosystem.

FMBN’s Internet Banking

Managing Director and Chief Executive of FMBN, Osidi, is very aware of the transformative power of optimising processes and has been a vocal proponent of digitisation as a cornerstone for transforming Nigeria’s housing finance sector.  

In a recent address, Osidi emphasised the importance of integrating Information and Communication Technology (ICT) into the bank’s operations: 

 “We must be deliberate in executing whatever strategic intents we have committed ourselves to implementing. The implementation of the Strategic Blueprint would be achieved if the Bank leverages the use of ICT, not only in its strategy project management endeavours, but across its work processes and product platforms,” he said.

To buttress this, the FMBN internet banking platform, accessible via ibank.fmbn.gov.ng, according to the bank, offers round-the-clock access to key mortgage services. NHF contributors, it says, can log in at their convenience to remit contributions, apply for loans, request account statements, or track their financial activities. 

This digital freedom means users are no longer limited by banking hours or the need to physically visit FMBN branches. To ensure accessibility across demographics and locations, the platform supports multiple payment options, including card transactions, USSD codes, and bank transfers through Remita and Etransact. 

“These options ensure that even contributors in rural or underbanked areas can meet their NHF obligations with ease. The platform’s user-friendly interface simplifies the experience,” the FMBN stated.

Why It Matters

The launch of the internet banking platform comes at a crucial time for Nigeria. With a large youth population entering the workforce and a rapidly growing urban population, the demand for accessible mortgage solutions is at an all-time high. 

Traditional processes can no longer meet the scale or speed required to address the national housing crisis. For instance, in the past, the path to homeownership for a teacher in Lagos, a tailor in Kano, or a mechanic in Port Harcourt was long and uncertain. Endless visits to physical branches, unexplained delays, and the lack of transparency made homeownership feel like a far-off dream. Today, the FMBN has said that the same journey can begin during a lunch break, with a few taps on a smartphone.

Real-Time Transparency

Osidi also highlighted the role of digitisation in enhancing transparency and combating corruption within public institutions, stressing that “Digitalisation, Discipline Will Drive Transparency, Stamp Out Corruption in Public Institutions.” 

According to him, “The crop of new players in the real estate sector serves as a wake-up call for us, the ‘traditional players’ to equally rapidly adopt technology, but more importantly, pursue business opportunities by way of collaboration and partnerships…”

Through these initiatives, Osidi said he aims to position FMBN as a modern, efficient, and customer-centric institution, capable of meeting the evolving needs of Nigerians in the housing finance sector.

Therefore, one of the most transformative benefits of the FMBN internet banking platform is the clarity it brings to contributors. In the past, some workers did not know the status of their NHF contributions or whether employers were faithfully remitting on their behalf. 

Mortgage Access

Besides, the platform acts as a digital gateway to all of FMBN’s mortgage loan offerings, including NHF Mortgage Loans, Home Renovation Loans, Construction Loans, and Rent-to-Own Products. 

“Applicants can submit requests, upload documents and monitor application status without stepping into a physical branch of FMBN. Loan processing is faster, thanks to digital verification tools, and errors are minimised through automated checks.

“Once approved, loan repayment is equally convenient. Borrowers can log in to view repayment schedules and make payments online, consequently encouraging timely repayment and reducing the risk of default. This system not only benefits contributors but ensures a more stable and sustainable mortgage portfolio for the Bank,” the FMBN maintains.

Enhanced Refund Requests

Through the Internet banking platform, FMBN now enables contributors to initiate refund requests directly through the portal. Eligible contributors who have retired completed their repayment cycle, or met specific criteria can track their application from start to finish. 

The funds are deposited directly into their registered bank accounts once approved. This digital refund process eliminates long-standing frustrations associated with delayed or lost refunds, enhancing service satisfaction and reinforcing the bank’s credibility.

Driving Financial Inclusion

Perhaps one of the most significant impacts of FMBN’s digital push, according to the bank, is its contribution to financial inclusion. By removing physical and bureaucratic barriers, the FMBN Internet banking platform opens the NHF scheme to underserved populations like artisans and tradespeople, informal sector workers, self-employed professionals, as well as rural residents with limited access to traditional banks.

“These groups can now register independently, make flexible contributions, and even access non-interest loan products aligned with their income patterns. This inclusivity supports the Central Bank of Nigeria (CBN) financial inclusion strategy and aligns with the broader national housing agenda championed by President Tinubu, that every Nigerian deserves decent and affordable housing,” it stated in a note.

Driving Diaspora Engagement

Looking beyond national borders, FMBN says it’s using its digital tools to reach Nigerians in the diaspora. Through its specialised NHF Diaspora Mortgage Loan product on the verge of a launch, diaspora Nigerians will be able to register, contribute to the NHF scheme, and access mortgage services remotely. This will provide a secure, trustworthy platform for overseas citizens to invest in real estate back home while deepening their ties with Nigeria.

Digital Space Security 

“Security is central to FMBN’s internet banking experience. With advanced encryption, multi-factor authentication, and secure payment gateways, the platform protects customer data and financial transactions from cyber threats. 

“The use of OTP verification, BVN consent, and email confirmations adds multiple layers of protection, ensuring that users transact with confidence. The bank also maintains a dedicated ICT helpdesk platform to provide support, resolve technical issues, and assist users in navigating the digital interface,” it pointed out.

Core Banking App

According to the bank, behind the scenes, the Core Banking Application (CBA) of FMBN powers the efficiency of the Internet banking platform. Custom-built for FMBN’s mortgage banking needs, this back-end system automates every aspect of the bank’s services, including contributor and employer registration, loan disbursement and repayment tracking, contribution monitoring, and refund processing.

The CBA, the bank says, also supports advanced modules such as treasury management, financial reporting, risk accreditation, and human resources management.

This, it points out, makes the CBA not just a banking tool but a comprehensive digital infrastructure that enhances both operational performance and organisational agility.

Ripple Effects

The true impact of FMBN’s digital shift extends far beyond mere convenience. By moving services online, FMBN insists it has achieved something remarkable: Making housing finance accessible to Nigeria’s vast informal sector. 

 It added that: “Market women, artisans and freelance professionals who were once excluded from formal mortgage systems can now register and contribute with ease, their economic status no longer a barrier to homeownership.”

Beyond Paperwork

Under Shehu Osidi’s leadership, FMBN is not only improving access to mortgage finance but also restoring hope and dignity to millions of Nigerians with dreams of owning a home. The path to homeownership no longer winds through crowded banking halls or gets lost in piles of paperwork. 

“Today, that path lives in the palms of the hands of Nigerians, accessible anytime, anywhere, with just a few taps on a screen. This is the future of mortgage banking in Nigeria, and FMBN, as Nigeria’s premier mortgage finance institution, is boldly leading the charge,” the bank notes.