How FMBN is Tackling Affordable Housing Supply Challenge

Terhemen Ikyaave

Nigeria’s housing supply crisis has left a significant portion of the population trapped in a cycle of unaffordability and inadequate living conditions. With a rapidly growing population and urbanization rates on the rise, the demand for housing has outpaced the available supply, resulting in skyrocketing prices and limited options for aspiring homeowners. According to recent statistics, Nigeria faces a staggering housing deficit of over 20 million units, an alarming figure that underscores the magnitude of the challenge at hand.

However, amidst these daunting circumstances, the Federal Mortgage Bank of Nigeria (FMBN) under the Madu Hamman-led Management Team is optimising its operations and making remarkable strides towards changing the narrative. Recognizing the urgent need to address the housing crisis, the FMBN is taking proactive steps to bridge the housing supply gap and ensure that affordable homes become a reality for Nigerians from all walks of life.

The FMBN’s commitment to tackling the housing supply challenge is evident in its multifaceted approach. The bank has been at the forefront of financing and facilitating the construction of housing estates across Nigeria, aiming to provide quality homes at affordable prices. Through collaborations with key stakeholders such as state governments, labor unions, and employers’ associations, the FMBN has been able to leverage collective efforts and resources to maximise the impact of its initiatives.

FMBN Inaugurates 404 Affordable Homes in Enugu

One notable stride is the commissioning on May 16, 2023, of the I-Connect Investment Cooperative Society Limited Housing Estate Projects in Enugu. The development marked the completion of 404 housing units across four transactions, delivering much-needed affordable homes to the people of Enugu. With a substantial investment of over N5.2 billion in credit facilities, the FMBN has played a pivotal role in turning these housing projects into a tangible reality.

The projects are strategically located in Trans Ekulu and Nkanu West, underscoring the FMBN’s commitment to addressing the housing shortage in various areas of Enugu State.

Speaking at the ceremony, the Managing Director/Chief Executive Officer of the FMBN, Mr. Madu Hamman, represented by the Executive Director, Loans and Mortgages, Lukman O. Mustapha, noted that the FMBN’s efforts extend beyond Enugu, as the bank consistently works to bridge the housing deficit in Nigeria.

“In addition to the four housing projects that we are commissioning today financed under the FMBN Cooperative Housing Development Loan (CHDL) window, we have nine other housing projects spread across the State that have also been financed and successfully delivered by FMBN under our various loan windows. Through those projects, FMBN has committed more than N10.2 billion to deliver 1,520 housing units.

“In addition to the 1,520 housing units financed and successfully delivered through nine other housing projects in Enugu State, he said the FMBN has undertaken commissioning ceremonies of several housing estates in numerous states across the country. From Borno to Lagos, Adamawa to Kano, the FMBN’s commitment to affordable housing is evident, as it strives to bring the dream of homeownership within reach for countless Nigerians,” he said.

The Executive Director, Loans and Mortgage Services, Mr. Lukman O. Mustapha, highlighted the transformative impact of the cooperative housing initiative developed by the FMBN, emphasizing its potential as a game-changer in addressing Nigeria’s housing shortage.

The FMBN’s impact is further magnified through its various loan programs, which provide essential financial support to aspiring homeowners. Recent statistics show that over the past year, the FMBN has approved substantial sums for programs such as the NHF Loan, Rent-To-Own, and Individual Construction Loan. This includes about N14 billion in National Housing Fund (NHF) Mortgage loans, N2.5b Rent To Own and N200m in Individual Construction Loans.

These loans have benefited over 2,000 NHF contributors, empowering them to turn their dreams of homeownership into reality. With favorable interest rates and extended repayment periods, the FMBN is not only increasing the housing stock but also ensuring that homeownership becomes a sustainable and achievable goal for Nigerians.

Commissioning of 180-Housing Unit Estate in Anambra State

Another illustration is the commissioning of a 180-housing unit estate in Nkwelle Ezunaka, Oyi L.G.A, Anambra State. This project, financed under the National Affordable Housing Delivery Programme (NAHDEP) for Nigerian workers, showcases the FMBN’s dedication to addressing the housing needs of workers in Enugu. The estate comprises a mix of 2-bedroom semi-detached bungalows and 3-bedroom fully detached bungalows, meticulously designed to align with local preferences and affordability requirements.

With competitive price points of N7 million and N8 million respectively, these homes offer an accessible entry point into the housing market for many aspiring homeowners.

Beyond the bricks and mortar, the FMBN’s housing initiatives have far-reaching socio-economic implications. By providing affordable homes, the bank is empowering Nigerian workers, enabling them to secure stable and dignified living conditions. Additionally, the construction and development of these housing estates have generated a substantial number of direct and indirect jobs, contributing to local economic growth and stimulating job creation in the construction sector. Conservative estimates indicate that the Anambra State project alone has generated over 2,160 jobs during the construction period, underscoring the positive ripple effects of the FMBN’s housing interventions.

FMBN commissions 257 housing units in Katsina State

FMBN’s commitment to addressing Nigeria’s housing supply crisis was further demonstrated on May 11th as the bank commissioned a remarkable residential estate project in Daura, Katsina State.

This development, comprising 80 semi-detached bungalows with 2- and 3-bedroom options, marked another significant milestone in the bank’s relentless pursuit of affordable housing for Nigerians. The project was financed under the Ministerial Pilot Housing Scheme (MPHS) in collaboration with the Federal Ministry of Works & Housing, reinforcing the bank’s dedication to innovative initiatives that can alleviate the country’s housing crisis.

The commissioning ceremony itself was an extraordinary occasion, as it encompassed not just one, but four simultaneous events. Alongside the Daura project, three other housing estates in different parts of Katsina State were ready for commissioning. These include 69 housing units in Funtua, 54 housing units in Mulunfashi, and an additional 54 housing units in Kankia, all specifically designated for the Medical and Health Workers Union of Nigeria. This coordinated effort highlights the scale of FMBN’s impact in Katsina State and underscores the bank’s commitment to catering to the diverse housing needs of different segments of society.

Representing the Managing Director/Chief Executive of FMBN, Mr. Madu Hamman, at the event, the Executive Director of Loans and Mortgage Services, Lukman O. Mustapha, acknowledged the crucial role that Katsina State plays in the National Housing Fund (NHF) scheme.

He commended the state for its consistent and unwavering support, which has positioned it as a focal point for FMBN-sponsored housing projects. Hamman also expressed gratitude to the Katsina State Executive Governor, Alhaji Aminu Bello Masari, for his steadfast commitment, without which the successful delivery of these projects would not have been possible.

In addition to the four projects commissioned in Katsina State, FMBN has financed and completed 11 other housing projects across the state, totaling 1,571 housing units. These achievements highlight the bank’s substantial investment in Katsina State’s housing sector, with over N7.7 billion committed to addressing the housing deficit and providing affordable homes for the people.

FMBN Commissioning of 72-Unit Affordable Housing Estate in Ogun State

Earlier on in the South West, the Federal Mortgage Bank of Nigeria (FMBN) had commissioned a 72-unit affordable housing estate in Shagamu, Ogun State built for the Lagos State Development & Property Corporation (LSDPC) Millennium Multipurpose Cooperative Society.

The project, fully funded by FMBN under the Cooperative Housing Development Loan window, comprised 48 units of 2-bedroom terrace apartments and 24 units of 3-bedroom semi-detached bungalows. The estate was meticulously planned and developed, with essential infrastructure in place, including internal road networks, drainage systems, electricity, and water supply. These provisions created a comfortable and livable environment for the residents.

During the commissioning ceremony, Mr. Madu Hamman, the Managing Director/Chief Executive of FMBN, emphasized the bank’s commitment to realizing the dreams of Nigerian workers who contribute to the National Housing Fund (NHF) Scheme. He highlighted the significance of the FMBN Cooperative Housing Development Loan window in facilitating the successful delivery of projects. He noted that the FMBN not only funded the construction of housing for cooperative societies but also enabled cooperative members to acquire these houses through the Individual National Housing Fund (NHF) loans.

In another location, the FMBN commissioned the COMACO MULTI PURPOSE COOPERATIVE Housing project in Lekki, Lagos State, on Friday, May 5th, 2023. The impressive estate, comprising 28 housing units, is fully equipped with essential infrastructure, ensuring a comfortable and livable environment for the residents. Speaking at the event, the FMBM MD/CE, Mr. Madu Hamman said the Bank created the Rent-To-Own Window, which allows off-takers to take possession of their houses and make rental payments over time based on their age and income. This innovative approach ensures that the houses eventually become fully owned by the occupants upon completion of payment, eliminating the need for equity contributions.

Statistics indicate that beyond Lagos, Ogun, Katsina, Anambra and Enugu, FMBN is replicating these efforts across Nigeria to continue to reduce the housing deficit and provide affordable homes for our people. In January, the bank conducted its first series of 2023 commissioning ceremonies in Borno, Adamawa, Yobe, Ebonyi, Ondo, Sokoto, Kogi and Katsina States involving more than 1,000 housing units. In the second phase which kicked off this May, also includes more housing launches in Imo, Kano, Jigawa, Kwara States, as well as the FCT.

Through its strategic investments, groundbreaking initiatives, and unwavering commitment to its mandate, the FMBN is enhancing the accessibility and affordability of housing for the working-class citizens of Nigeria. By partnering with labor centers, cooperative societies, developers, and government agencies, the bank is successfully delivering thousands of housing units, providing homes that were once only dreams for many Nigerians.

The journey towards affordable housing for all is far from over, but with the Federal Mortgage Bank of Nigeria leading the way, the vision of a nation where every Nigerian has access to safe, affordable, and comfortable housing is becoming increasingly tangible.

*Ikyaave is a housing policy analyst; he writes in from Abuja.