Nigerian Government to Commercialize Federal Mortgage Bank, Targets 50,000 Housing Units Annually

The Nigerian government plans to commercialize the Federal Mortgage Bank of Nigeria to boost affordable housing and mortgage financing, aiming to construct 20,000 units in 2024 and 50,000 annually thereafter.

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Nasiru Eneji Abdulrasheed
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Nigerian Government to Commercialize Federal Mortgage Bank, Targets 50,000 Housing Units Annually

Nigerian Government to Commercialize Federal Mortgage Bank, Targets 50,000 Housing Units Annually

The Nigerian government has announced plans to commercialize the Federal Mortgage Bank of Nigeria (FMBN) as part of efforts to improve housing delivery in the country. FMBN Managing Director Shehu Osidi revealed this during a visit by the Federal Housing Delivery Reforms Task Team in Abuja.

According to Osidi, the commercialization plan involves repositioning and recapitalizing the bank to align its operations with its mandate of providing affordable mortgage financing. The government aims to use the commercialization of FMBN to boost housing supply and meet the country's growing demand for affordable housing.

FMBN has set ambitious targets to construct 20,000 housing units in 2024 and 50,000 units annually thereafter. The bank is currently working on a major ICT project and amendments to its acts in the National Assembly to support these goals.

Why this matters: The commercialization of FMBN is a critical step towards realizing Nigeria's housing aspirations and facilitating access to affordable mortgage financing for Nigerians. With a significant housing deficit, this initiative has the potential to improve the lives of many citizens by providing them with the opportunity to own their homes.

Despite facing challenges such as performance issues with estate development loans, FMBN is implementing reforms to enhance service delivery and operational efficiency. These reforms include process automation, cost efficiency, credit quality, project management, strategic partnerships, and talent management.

"The focus is on repositioning and recapitalizing the bank to stay true to its mandate of affordable mortgage financing," Osidi stated during the visit. The FMBN Managing Director also highlighted the bank's 5-year strategic blueprint, which outlines its plans for the future.

The commercialization of FMBN is expected to attract private sector investment and expertise, enabling the bank to expand its reach and impact in the housing sector. By leveraging strategic partnerships and adopting best practices, FMBN aims to become a more efficient and effective institution in delivering affordable housing solutions to Nigerians.

Key Takeaways

  • Nigerian govt plans to commercialize Federal Mortgage Bank of Nigeria (FMBN)
  • Aims to reposition and recapitalize FMBN to provide affordable mortgage financing
  • FMBN targets 20,000 housing units in 2024, 50,000 annually thereafter
  • Commercialization to attract private investment, improve FMBN's efficiency and impact
  • FMBN implementing reforms to enhance service delivery and operational efficiency