The Federal Mortgage Bank of Nigeria (FMBN) secures a N100 billion Offtaker Guarantee to support the Karsana Renewed Hope City project in Abuja. This initiative is part of the Renewed Hope Cities and Estates Programme, which operates under a Public-Private Partnership (PPP) framework to address Nigeria’s housing deficit.
The Minister of Housing and Urban Development, Musa Dangiwa, announces this development during a presentation at the State House Gallery, Aso Villa. He reveals that the guarantee enables developers to mobilize over N40 billion in financing, marking a significant step in resolving housing challenges in Nigeria.
“The Ministry facilitates a N100 billion Bankable Offtaker Guarantee by the Federal Mortgage Bank of Nigeria (FMBN) for the Karsana Renewed Hope City. This has enabled developers to mobilize over N40 billion in financing—a first in the history of Nigeria’s housing sector,” Dangiwa states.
Enhancing Affordability and Delivery
Dangiwa highlights the importance of the Offtaker Guarantee in addressing issues like high land costs and double-digit interest rates on construction loans. He explains that the guarantee reduces financial risks for developers, ensures timely project delivery, and improves housing affordability for low- and middle-income earners.
“The biggest intervention is the N100 billion Bankable Offtaker Guarantee that the Bank provides for the Renewed Hope Cities project,” he adds.
FMBN’s Wider Contributions
Dangiwa outlines additional efforts by FMBN to enhance housing delivery across Nigeria. Since May 2023, the bank disburses N59.3 billion in housing loans, constructs 2,465 housing units, and generates 61,625 construction jobs.
Under the current administration, FMBN introduces several initiatives to make housing more accessible. These include single-digit long-term loans, home renovation loans, rent-to-own schemes, and Cooperative Housing Development Loans. The Rent Assistance product also helps Nigerians manage rent payments by spreading costs into affordable monthly installments.
Renewed Hope Cities Programme
The Renewed Hope Estates and Cities Programme, launched in February 2024, aims to deliver 100,000 housing units nationwide through a PPP model. Developers handle land acquisition and financing, while the government provides an enabling environment for execution.
The flagship project, the 3,112-unit Renewed Hope City in Karsana District, Abuja, leads the initiative, with similar projects underway in Lagos and Kano. The programme seeks to balance commercial viability with social impact by offering some units at market rates while providing others at concessionary prices for low- and middle-income earners, including members of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).
The Renewed Hope Cities Programme represents a bold and innovative step toward addressing Nigeria’s housing deficit, leveraging partnerships and financial innovation to deliver affordable, high-quality housing for Nigerians.
