The Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Osidi, has stated categorically that the institution has concluded arrangements to increase its loan limit from ₦15 million to ₦50 million soon.

Osidi made this disclosure during the House Committee on Housing and Habitat oversight visit to the bank in Abuja.

He explained that the increase is aimed at meeting the financing needs of higher medium-income earners and addressing the challenges posed by higher construction costs.

He further explained that the bank is working towards the construction of students’ hostel accommodations.

He noted that the product is under development and that FMBN has signed a memorandum of understanding with Shelter Afrique, which is expected to generate funding for the initiative.

On the promotion of new affordable housing models, the Managing Director revealed that the bank has partnered with the University of Lagos Centre for Housing Studies for research aimed at showcasing affordability and promoting financial inclusion.

“We are also encouraging the development of housing loans that propose using biodigesters to generate power instead of connecting to the National Grid. These biodigesters would utilise liquid waste, such as defecation and urine, to generate electricity,” he said.

Supporting the government’s Renewed Hope Agenda, Osidi said that the bank has provided a ₦100 billion Bankable Off-taker Guarantee to real estate developers undertaking the construction of affordable housing units. He added that this initiative is a single-digit interest rate loan to be delivered under the housing programme.

Earlier, the Committee Chairman, Abdulmumini Kofa, stated that the visit was aimed at obtaining firsthand information and cross-checking facts and figures that would inform the National Assembly’s decisions on the bank’s programmes to provide affordable housing to citizens.