Assessing FMBN’s Affordable Housing Delivery Under Tinubu

Nigeria has long grappled with a persistent and widening housing deficit estimated at between 20 million to 28 million units. This chronic shortage has for decades remained a damning national challenge, defying the efforts of successive administrations. 

Emmanuel Addeh writes that the sector, with the much needed nudge from the Federal Mortgage Bank of Nigeria (FMBN), appears to be getting priority attention under the Bola Tinubu administration.

Millions of Nigerians have lived in substandard, overcrowded and insecure housing conditions, unable to access decent and affordable homes. Experts attribute this to a combination of factors, including weak mortgage systems, limited access to credit, ineffective housing policies and an urbanization rate that continues to outpace housing supply.

When Tinubu assumed office in May 2023, he inherited this daunting legacy, and went about tackling the challenge head-on, recognising that access to decent housing is not just a matter of shelter but a cornerstone of national development. Besides, it promotes social stability, improves health outcomes, reduces poverty and drives inclusive economic growth.

Therefore, one of the administration’s earliest decisions was appointing Ahmed Dangiwa, a  technocrat with deep sectoral experience, as the Minister of Housing and Urban Development. This signaled the president’s determination to bring competence and innovation to bear on the housing sector. 

Thus, the federal government followed this by launching the Renewed Hope Cities and Estates Programme, laying the foundation for a 3,112-unit in Karsana, Abuja. At the event, the president made a clear and powerful declaration: “Every Nigerian deserves access to decent and affordable housing.”

Thereafter, within the first year of this administration, he appointed a new executive management team, led by Shehu Osidi as Managing Director/Chief Executive, to drive institutional reforms and unlock the bank’s full potential. 

As a further reflection of his commitment to housing sector progress and the critical role of FMBN, one year later, Tinubu complemented this with the appointment of a new Board of Directors chaired by Dr. Nasiru Gawuna, adding strategic oversight to the bank’s operations.

Within the two years of the current administration, the FMBN under Osidi’s leadership says it has rolled out a blend of innovative and impactful initiatives, lifting thousands of Nigerians out of despair and into decent homes, improving living conditions and energising the broader real estate economy. 

From record disbursements to digital solutions, FMBN notes that its achievements reflect a renewed commitment to bridging Nigeria’s housing deficit and empowering citizens in line with the current administration’s agenda in the sector.

Expanded Mortgage Access

One of the bank’s standout achievements during this two-year period has been the unprecedented scale of mortgage disbursements under the National Housing Fund (NHF) Scheme. Between May 2023 and early 2025, the bank disbursed over N11.75 billion in NHF mortgage loans to 1,285 beneficiaries. These funds provided access to affordable, long-tenure loans at single-digit interest rates, reducing the financial barriers that historically hindered many Nigerians from owning homes.

“Also recognising that upfront rent costs often pose barriers for many families, FMBN has scaled up its Rent-to-Own programme. With N15.06 billion disbursed in the past two years, 1,140 Nigerians now live in homes they are gradually paying for through rent, with the assurance of eventual ownership. This flexible model is delivering both shelter and long-term security.

“Beyond facilitating new ownership, FMBN has supported existing homeowners through its Home Renovation Loan initiative. Over 27,900 Nigerians have accessed N15.35 billion to carry out essential home upgrades. This has improved living standards and preserved property values while stimulating the growth of local construction and building materials sectors,” the bank disclosed.

To further reduce the housing deficit, FMBN has financed the construction of 2,542 new housing units valued at N30.91 billion. These projects are spread across Nigeria’s geopolitical zones and tailored to low- and middle-income earners, supporting inclusive urban growth while also generating thousands of jobs in allied industries.

Support for Cities and Estates Projects

A major contribution to the government’s housing agenda is FMBN’s support for the Renewed Hope Cities and Estates Programme. The Bank committed a N100 billion Off-Taker Guarantee to private developers handling the project, providing the assurance needed to access loans and begin construction.

“Additionally, FMBN is directly financing federal housing projects in Ibeju-Lekki, Lagos, and Karsana, Abuja, with N27 billion and N19.9 billion respectively. These cities are envisioned as modern, sustainable communities with critical infrastructure, green spaces and integrated transportation, which are hallmarks of the Tinubu administration’s urban vision,” a note from the bank stated.

Digital Transformation

In a country where public institutions are often hampered by slow service delivery and manual processes, the bank has charted a different path. The full deployment of the FMBN Core Banking Application (CBA), which has been in the works for years, marked a landmark achievement. 

With this system, contributors can register, remit NHF payments, apply for loans, check balances and request refunds online, eliminating bottlenecks and long queues. Service turnaround times have been reduced by over 40 percent as a result of this initiative.

This digital shift is especially empowering for Nigeria’s tech-savvy youths, small business owners and remote workers who demand convenience and speed. The CBA aligns with  Tinubu’s broader digital public sector vision and positions FMBN as a modern institution capable of scale and inclusion. It has eliminated the challenge of financial alienation which previously besieged underserved populations.

It added: “As a result of these improvements, FMBN was ranked among the top 10 Ministries, Departments, and Agencies (MDAs) in customer service and among the top three in its sector in the 2024 SERVICOM scorecard. 

“The bank also received “The Best Housing Finance Solution Award 2024” from the Africa Housing Awards and earned a 72.5 per cent compliance score from the Independent Corrupt Practices Commission (ICPC).”

New Products for Diaspora

Recognising the vital role of the diaspora community in national development, FMBN introduced some products to bridge the gap between non-resident Nigerians and the local housing market.

This initiative not only supports the individual aspirations of Nigerians abroad but also contributes to national economic growth by channeling diaspora remittances into real estate and infrastructure development.

To this end, FMBN has broadened its product portfolio to reflect Nigeria’s diverse workforce. New offerings include a Rent Assistance Loan and a Home Improvement Loan, both designed for the informal sector. These products target self-employed individuals and daily earners who typically lack traditional documentation but represent a large portion of the population.

The bank is also introducing a Non-Interest NHF Mortgage Loan, providing an option for Nigerians who prefer alternative financial models. These initiatives reflect FMBN’s responsiveness to evolving customer needs.

“Another landmark initiative is the soon-to-be-launched Diaspora Mortgage Product, developed in collaboration with the Nigerians in Diaspora Commission (NiDCOM). This will allow Nigerians abroad to contribute to the NHF Scheme and access mortgage financing for homes in Nigeria. It will also strengthen diaspora ties and offer a safe, structured real estate investment avenue.

“With remittances from Nigerians abroad exceeding $20 billion annually, this product is expected to unlock new inflows into the housing sector and position FMBN as a strategic player in diaspora engagement,” it stated.

Strong Financials

It has also demonstrated financial discipline and growth. Under its current leadership, as of December 31, 2024, the Bank recorded its first-ever financial surplus of N11.58 billion in the over 30 years of its existence (unaudited). This reflects enhanced efficiency, prudent risk management and strong financial stewardship.

As a mark of a commitment to sustain and improve these efforts, FMBN has already recorded a financial surplus of N6.5 billion this year, less than six months into the year. This financial turnaround is not just a technical accomplishment. It represents a broader institutional transformation that enhances FMBN’s capacity to drive systemic change in the housing ecosystem. This is a significant boost to the Tinubu administration.

National Mortgage Registry

To modernise the mortgage sector and ensure greater transparency, FMBN is spearheading the establishment of a National Mortgage Registry (NMR). Aligned with the president’s priorities and the ministerial goals set by Dangiwa, the NMR is currently in the development and testing phase.

Once launched, the centralised, digital database will record mortgage transactions in real-time, enabling financial institutions, government agencies and homebuyers to verify property titles, track loan status and prevent fraud. 

It will streamline processes, reduce risks and expand access to mortgage finance, especially for informal sector participants who were historically excluded from the system.

Strategic Initiatives

To deepen its impact, FMBN said it is pursuing a N500 billion recapitalisation to expand its capacity for affordable housing delivery. The initiative involves a federal government equity injection and the raising of debt from domestic and international sources.

Simultaneously, the bank is working to amend the FMBN and NHF Acts to modernise its legal framework. These reforms are aimed at strengthening institutional effectiveness, enhancing access to finance and ensuring long-term sustainability of the housing sector.

“In just two years, FMBN has translated President Tinubu’s bold vision into lived realities for thousands of Nigerian families. Whether it is a market trader in Kano receiving a rent assistance loan, a civil servant in Akwa Ibom renovating her home, or a young couple in the diaspora securing a mortgage for their first property back home, the impact of FMBN’s transformation is real, wide-reaching and deeply human.

“Through innovation, inclusivity, and sound leadership, FMBN is not only building homes. It is renewing and building hope and a sustainable future for millions of Nigerians,” the bank noted.

Looking ahead, FMBN’s strategic roadmap includes the development of innovative products tailored to meet the diverse needs of Nigerians, including those in the diaspora and the informal sector.  The bank’s commitment to these initiatives underscores its pivotal role in realizing the “Renewed Hope” agenda, aiming to make homeownership a reality for all Nigerians. 

These strides made by FMBN under President Tinubu’s administration, the bank says,  signify a promising trajectory towards addressing Nigeria’s housing challenges. Through continued innovation, strategic partnerships, and a steadfast commitment to its mission, the bank maintains that it is poised to play a central role in shaping the nation’s housing landscape in the years to come.