The Federal Mortgage Bank of Nigeria (FMBN) has embarked on a plan to rejuvenate approximately 46 abandoned housing projects across the country. This initiative comes through a collaborative effort with Shelter Afrique Development Bank, a financial institution focused on supporting the housing and real estate sector in Africa.
During a recent meeting with the management of Shelter Afrique Development Bank in Abuja, the Managing Director of FMBN, Shehu Usman Osidi, expressed the bank’s commitment to revitalizing these housing estates as a top priority. Osidi highlighted the importance of this partnership in providing construction and mortgage financing to developers in Nigeria.
Osidi emphasized the need to address the issue of abandoned projects, citing instances where agreements with state governments fell through, resulting in project abandonment. He noted that the collaboration with Shelter Afrique Development Bank, which offers infrastructure financing, presents an opportunity to complete these projects and provide housing to Nigerians in need.
As Nigeria holds a significant stake in Shelter Afrique Development Bank, Osidi outlined plans to leverage funding opportunities to achieve the target of delivering 100,000 housing units to Nigerians this year. The FMBN is currently revisiting previous memoranda of understanding with Shelter Afrique Development Bank to maximize the benefits of this renewed partnership.
Thierno-Habib Hann, the CEO of Shelter Afrique, affirmed the organization’s commitment to collaborating with FMBN and other Nigerian institutions to address the housing deficit. He highlighted Nigeria as a key investment destination, citing the substantial Diaspora remittances of over $25 billion annually.
In a related development, FMBN reported collecting approximately N100 billion in remittances through the National Housing Fund (NHF) scheme in 2023. The NHF scheme, established to facilitate low-cost funds for housing investment, collects 2.5 percent monthly deductions from employees earning a basic salary.
Former FMBN Managing Director, Madu Hamman, highlighted this achievement in the bank’s recent performance report. He emphasized the importance of innovative financing methods to meet the demands of contributors to the NHF scheme and address the housing deficit effectively.
