The Federal Mortgage Bank of Nigeria (FMBN) has launched a new wave of people-focused mortgage products aimed at making homeownership more accessible to ordinary Nigerians.
Speaking in an interview, Managing Director Shehu Usman Osidi said the bank is shifting from a rigid, process-driven system to a more flexible, inclusive housing finance model powered by innovation and digital access.
Expanding mortgage access
At the centre of the reform is the expansion of mortgage offerings tailored to low- and middle-income earners. These include Rent-to-Own, Home Renovation Loans, Rent Assistance, Non-Interest Mortgages, and a Diaspora Mortgage Scheme.
According to Osidi, these products are designed to remove long-standing barriers that have kept millions of Nigerians out of the housing market.
He disclosed that over 24,000 Nigerians have already accessed renovation loans worth more than ₦21.2 billion, while the Rent-to-Own scheme allows families to move into homes without upfront equity, paying gradually like rent.
Housing delivery gains momentum
The bank also recorded a significant increase in housing delivery. In 2025, FMBN financed 6,911 housing units, a sharp rise from 2,165 units in 2024.
Large-scale housing projects are currently underway in cities such as Abuja, Lagos, and Enugu under the Renewed Hope Housing Programme.
Addressing affordability challenges
Osidi acknowledged that Nigeria’s housing crisis is driven more by affordability than supply.
He noted that many Nigerians cannot afford available homes, while others struggle to access financing, making affordability the key issue the bank aims to address.
To cushion the impact of inflation and high lending rates, FMBN mortgages offer single-digit interest rates of six to seven percent, alongside flexible repayment structures.
Broadening inclusion
The bank dismissed claims that mortgage financing benefits only the elite, stating that its programmes now target grassroots beneficiaries including civil servants, artisans, teachers, and small business owners.
Partnerships with labour unions and cooperatives are also helping to expand access to housing finance across different income groups.
Financial performance and outlook
FMBN reported an operational surplus of ₦19.5 billion in 2025 and has invested over ₦79 billion in housing projects.
Additionally, the bank recovered more than ₦27 billion from delinquent loans, strengthening its financial position.
Despite ongoing challenges such as undercapitalisation, Osidi expressed optimism about a planned ₦750 billion recapitalisation drive, which is expected to boost the bank’s capacity.
He stressed that while Nigeria’s housing deficit cannot be solved overnight, the current reforms mark a significant turning point.
