The Minister of Housing and Urban
Development, Ahmed Dangiwa has said that the Federal Mortgage Bank of Nigeria (FMBN) is the cornerstone of Nigeria’s affordable housing delivery system, serving as implementing institution of the National Housing Fund (NHF) Scheme.
Dangiwa said this during the inauguration of the newly-appointed Chairman and board members of the bank in Abuja.
He stated that through the bank, Nigerians in both informal/formal employment in the public and private sectors can access mortgage loans at rates and terms that no commercial institution can match.
Dangiwa urged the FMBN board to provide strategic leadership in pushing forward the legislative amendments and institutional reforms necessary to modernize the bank through operationalizing the Core Banking Application, adding that this is a critical digital transformation project.
“We are talking about single-digit interest rates of 6 to 7 percent, repayment periods of up to 30 years, and equity contributions as low as zero to 10 per cent. In contrast, commercial banks charge 18 to 24 percent interest, require 30 percent equity, and offer tenors of just 5 to 10 years,” Dangiwa said.
The minister further explained, “This advantage makes FMBN a national asset, but it must not become an excuse for complacency or inefficiency. The unique mandate of the bank imposes a corresponding duty of responsibility, innovation, and accountability. The bank must work and it must work better.
“With this system in place, National Housing Fund contributors can now seamlessly register online, remit monthly contributions, apply for loans, monitor repayments, request NHF refunds, and access their statements of account, all without stepping into a branch.”
Dangiwa therefore maintained that
this means aggressively reducing the non-performing loan portfolio, strengthening risk management, and clearing the backlog of audited accounts to restore credibility and institutional discipline.
According to him, there must be a clear commitment to expanded access to housing, with the bank delivering a minimum of 5,000 new homes annually.
He added that a significant portion of this should be through support for the Ministry’s Renewed Hope Cities and Estates and the bank must improve mortgage disbursement efficiency.
“We are expecting that at least 20,000 Nigerians should be able to access mortgage loans annually, with faster turnaround times and a vastly improved customer service culture.The board must drive the expansion of the NHF contributor base, targeting the informal sector and the Nigerian in diaspora,” Dangiwa said.
He hinted that the bank disbursed over ₦73 billion in housing finance, expanding access to over 30,000 beneficiaries through NHF mortgages, Rent-to-Own, and renovation loans and also registered nearly 374,000 new contributors, processed ₦30.7b, and mobilised over ₦203b in contributions.
The Housing Minister said that all these achievements are within two years, they have been able to record an operational surplus of ₦11.58b for the year ended December 2024 (unaudited), and are supporting the ministry’s Renewed Hope Housing Programme with innovative instruments such as a ₦100b Bankable Off-taker Guarantee.
Responding, the Board Chairman, Dr. Nasir Yusuf promised to rebuild the confidence of the bank among Nigerians in line with the Renewed Hope Agenda as well as strengthen its partnership ecosystem, and drive oversight, functions to ensure transparency, and unlock the full potential of the bank.
