The Federal Mortgage Bank of Nigeria has initiated a rehabilitation process to revive about 46 abandoned housing projects nationwide.
The bank said
this would be achieved through a partnership with Shelter Afrique Development
Bank, a pan-African finance institution that exclusively supports the
development of the housing and real estate sector in Africa.
The FMBN
Managing Director, Shehu Usman Osidi, stated this while hosting the management
of Shelter Afrique Development Bank recently in Abuja, noting that the bank had
made reviving the housing estates a priority.
According to
him, the intensified collaboration will help provide construction and mortgage
financing to developers in Nigeria.
He said,
“Nigeria has over 46 abandoned projects in the 36 states and the FMBN is
determined to revive them.
“Our findings
show that banks have entered into a housing financing agreement with states
where the state governments are expected to provide infrastructure for these
estates, but unfortunately many states reneged and the projects were abandoned.
“We have
explored the product offerings of Shelter Afrique Development Bank and found
out that they offer infrastructure financing, so we want to bring them on board
to offer this financing so we can finish up the projects and hand them over to
many Nigerians who need shelter.”
Osidi further
noted that Nigeria, the second largest shareholder in the bank with about 15
per cent holding, will explore areas of funding to achieve its target of
delivering 100,000 housing units to Nigerians this year.
He mentioned
that the FMBN is currently reviewing previously abandoned memoranda of
understanding that were signed with the organisation. This review aims to
explore the benefits that Nigerians could gain from this renewed partnership.
Also speaking,
the CEO of Shelter Afrique, Thierno-Habib Hann, said the organisation was in
Nigeria to promote its development financing agenda and identify Nigeria as a
destination for investments with over $25bn in Diaspora remittances each year.
He said, “We
are ready to collaborate with FMBN and other institutions across Nigeria to
address the housing gap. The challenges are there and the opportunities are
also there. As a development finance institution, we are very well positioned
to collaborate with the government of Nigeria and in this trip, we met all the
leadership including the vice president of the Federal Republic of Nigeria who is fully committed to
driving the growth of the sector and invest more in the sector knowing that
housing creates jobs.”
Meanwhile, the
bank has said it collected about N100bn in remittances through the National
Housing Fund in 2023.
The NHF scheme
was established by the Federal Mortgage Bank of Nigeria to facilitate the
continuous flow of low-cost funds for long-term investment in housing, through
2.5 per cent monthly deductions from employees earning a basic salary.
The former FMBN
Managing Director, Madu Hamman, stated this in his handover document obtained
by our correspondent.
He said, “The
highlight of our achievements in the last 22 months includes that for the first
time, in 2023 the National Housing Fund collection for the bank exceeded the
N100bn mark. This is the first time in the history of the bank that the annual
collection exceeded N100bn.”
“You have to
think deeply about how you’re going to be able to satisfy the demands of the
numerous contributors to the scheme through various innovative ways of raising
finance, which should include going outside the NHF because if we continue to
rely on the NHF that would not be achievable.”