The Federal Mortgage Bank of Nigeria lacks the financial capacity to effectively tackle the country’s substantial housing deficit, according to its Managing Director, Shehu Usman Osidi.
Speaking during an oversight visit to Abuja by the House of Representatives Committee on Housing and Habitat, led by Abdulmumin Jibrin, Osidi highlighted the financial challenges impeding progress.
“At an average of N10m per house, constructing a 500-unit housing estate in each of the 36 states would cost N180bn. Even then, it would not be enough to close the gap. Our major challenge in addressing the housing deficit is funding,” Osidi stated.
Osidi pointed out that the funding shortfall is a critical obstacle to reducing the housing deficit.
He also addressed concerns about access to contributions under the National Housing Fund.
He explained that contributors to the NHF could request refunds upon retirement or exit from the scheme, noting improvements in processing timelines.
“Previously, contributors could access their refunds within three months of exiting the scheme. Under the current administration, the timeline has been reduced to one month,” he said.
As the apex government-backed housing finance institution, the FMBN mobilizes long-term funds to provide affordable mortgages and construction loans for low- and middle-income Nigerians.
In order to enhance housing delivery, the bank also fosters primary mortgage banks and links between the capital and mortgage financing markets.
Osidi thanked the National Assembly for its support and emphasised the value of their collaboration in furthering housing objectives.
“Your visit underscores your dedication to effective oversight and governance in advancing housing development goals. We deeply value this opportunity to engage on the progress, challenges, and opportunities in our operations,” he said.
He reaffirmed the FMBN’s commitment to making homeownership more accessible and affordable for Nigerians despite the significant financial constraints facing the institution.
