FG Commences Rehabilitation Of 46 Abandoned Housing Projects Nationwide

The Federal Mortgage Bank of Nigeria (FMBN)  under the Federal Ministry of Works and Housing has embarked on a rehabilitation program aimed at revitalizing approximately 46 abandoned housing projects across the nation.

In order to achieve the renovation objective, the bank revealed it has entered into a partnership with Shelter Afrique Development Bank, a pan-African financial institution dedicated to supporting the growth of the housing and real estate sector in the country and Africa at large.

During a recent meeting in Abuja, the Managing Director of FMBN, Shehu Usman Osidi, emphasized the bank’s commitment to prioritizing the revival of these housing estates.

He further explained that the strengthened collaboration between the two institutions will facilitate the provision of construction and mortgage financing to developers in Nigeria.

He said, “Nigeria has over 46 abandoned projects in the 36 states, and the FMBN is determined to revive them.

“Our 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 reneged, and the projects were abandoned.

“We have explored the product offerings of Shelter Afrique Development Bank and found out that they offer infrastructure financing, so we want to bring them on board to offer this financing so we can finish up the projects and hand them over to many Nigerians who need shelter.”

Osidi also highlighted that Nigeria, the bank’s second-largest shareholder with a 15% stake, will be investigating funding opportunities to reach its goal of providing 100,000 housing units to its citizens this year.

The FMBN is currently reassessing previously neglected memoranda of understanding signed with the organization. This reassessment is aimed at exploring the advantages that Nigerians could derive from this revitalized partnership.

In his remark earlier, the CEO of Shelter Afrique, Thierno-Habib Hann, submitted that the organization’s presence in Nigeria is to advance its development financing agenda and recognize Nigeria as an investment destination, given the annual Diaspora remittances of over $25 billion.

“We are ready to collaborate with FMBN and other institutions across Nigeria to address the housing gap. The challenges are there and the opportunities are also there. As a development finance institution, we are very well positioned to collaborate with the government of Nigeria, and in this trip, we met all the leadership, including the vice president of the Federal Republic of Nigeria, who is fully committed to driving the growth of the sector and invest more in the sector knowing that housing creates jobs,” Vanguard quoted Hann saying.

The Federal Mortgage Bank of Nigeria established the NHF scheme to ensure a steady stream of affordable funds for housing investment, with a 2.5% monthly deduction from employees’ basic salaries.

According to the handover document from the ex-FMBN Managing Director, Madu Hamman, the bank reported collecting approximately N100bn in remittances through the National Housing Fund in 2023.

He said, “The highlight of our achievements in the last 22 months includes that for the first time, in 2023 the National Housing Fund collection for the bank exceeded the N100bn mark. This is the first time in the history of the bank that the annual collection exceeded N100bn.”

“You have to think deeply about how you’re going to be able to satisfy the demands of the numerous contributors to the scheme through various innovative ways of raising finance, which should include going outside the NHF because if we continue to rely on the NHF that would not be achievable.”