Housing: Federal Mortgage Bank receives N100bn remittances in 2023.

 


In a bid to provide adequate housing in the country, 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.

Managing Director, FMBN, Shehu Usman Osidi, stated this while hosting the management of Shelter Afrique Development Bank 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 forty-six abandoned projects in the 36 states and the FMBN is determined to revive them.

The FMBN managing director noted that 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 defaulted and the projects were abandoned.

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, with the aim of exploring 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.

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.

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