Federal Mortgage Bank of Nigeria Partners with Shelter Afrique to Revive Abandoned Housing Projects

The Federal Mortgage Bank of Nigeria (FMBN) has embarked on a rehabilitation process to breathe new life into approximately 46 abandoned housing projects across the country. This initiative comes as a result of a partnership with Shelter Afrique Development Bank, a pan-African finance institution dedicated to supporting the housing and real estate sector in Africa.

During a recent meeting in Abuja, FMBN Managing Director, Shehu Usman Osidi, highlighted the bank’s commitment to revitalizing these housing estates. He emphasized the collaboration with Shelter Afrique as a means to provide construction and mortgage financing to developers in Nigeria.

Osidi revealed that many of these projects were abandoned due to states reneging on their agreements to provide infrastructure. By leveraging Shelter Afrique’s infrastructure financing offerings, FMBN aims to complete these projects and deliver much-needed housing to Nigerians.

Moreover, Osidi mentioned Nigeria’s significant stake in Shelter Afrique, amounting to about 15%, and outlined plans to explore funding opportunities to deliver 100,000 housing units to Nigerians this year. The FMBN is currently reviewing previously abandoned memoranda of understanding with Shelter Afrique to maximize the benefits for Nigerians.

Echoing Osidi’s sentiments, Shelter Afrique CEO, Thierno-Habib Hann, expressed readiness to collaborate with FMBN and other Nigerian institutions to address the housing deficit. Hann highlighted Nigeria’s potential as an investment destination, citing the country’s substantial Diaspora remittances exceeding $25 billion annually.

In a related development, the FMBN reported collecting approximately N100 billion in remittances through the National Housing Fund (NHF) in 2023. The NHF scheme, established to facilitate low-cost funds for long-term housing investment, entails a 2.5% monthly deduction from employees’ basic salaries.