Following a closed-door deliberation lasting over two hours, the red chamber ratified recommendations from its finance panel, chaired by a key northern legislator. The measures now move to the lower legislative house and require executive authorization before they become enforceable instruments.

One of the approved policies introduces a new basis for allocating proceeds from value-added economic activities, replacing prior location-based criteria with end-user consumption as the determinant. Under this model, central authorities will retain a 10% share, sub-national entities will receive 55%, and grassroots administrations are assigned 35%. Among regional governments, distribution will consider equal share (50%), population size (20%), and location of end-use (30%), while the grassroots tier follows a slightly adjusted formula. A proposed reduction in collection fees from 4% to 2%—including revenue derived from extractive sectors—was accepted during deliberations.

The second measure formalizes the reconstitution of the primary revenue entity, appointing the national chief executive as chair of its supervisory board, with a Senate-approved deputy leading operational affairs. The structure includes regional representation, ensuring a spread of appointments across the country’s six major zones, with safeguards against dual appointments from any single state.

Expanded mandates for the restructured entity include overseeing corporate levies, driving policy modernization, and pursuing illicit financial activities linked to non-compliance. The proposal sets financial and custodial penalties for failure to register, declare earnings, or maintain accurate records, with fines ranging from tens of thousands of naira to potential imprisonment.

Presiding officers of the chamber praised the process and those who mediated disputes, asserting that the final framework was shaped by consensus rather than sectional interests. One senior figure noted that a special internal committee played a pivotal role in reconciling early disagreements, paving the way for broad legislative alignment.

Two additional components of the fiscal reform package are scheduled for review during the next plenary session.

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This remarkable achievement, covering the period from January to October 2024, has set a new standard for efficiency and service delivery in the bank’s 32-year history.

Shehu Osidi, the Managing Director and Chief Executive of FMBN, shared this achievement during a presentation to the Senate Committee on Lands, Housing, and Urban Development. The session, focused on reviewing the Federal Ministry of Housing and Urban Development’s 2024 budget performance and 2025 projections, revealed the transformative strides made under Osidi’s leadership. Since his appointment in February 2024, the FMBN has overhauled its processes, delivering results that represent more than 13% of the total NHF refunds since the scheme’s inception in 1992.

Osidi credited this success to a strategic management overhaul, emphasizing process automation and enhanced employee performance as central pillars. “When we took charge, we prioritized prompt service delivery to our subscribers. Our seven-point agenda focused on leveraging technology and building staff capacity to improve turnaround time,” Osidi stated. He further highlighted the near-completion of the Core Banking Application, a tool that has revolutionized customer interactions by ensuring rapid approvals and streamlined disbursements.

Far from resting on its laurels, the FMBN is forging ahead with a commitment to continuous innovation. “We understand that our subscribers are the foundation of this institution. Without them, there’s no FMBN. That’s why we are dedicated to delivering top-tier services and ensuring their housing needs are met promptly and effectively,” Osidi remarked.

The numbers tell a story of success. Between January and October 2024, the FMBN registered 166,926 new contributors to the NHF scheme, bringing the total number of contributors to nearly 5.9 million. During this same period, the bank disbursed N29.5 billion in loans, including more than N12 billion allocated under the innovative rent-to-own scheme. Overall, the FMBN has facilitated loans worth N455.13 billion since its establishment, a testament to its enduring impact on Nigeria’s housing landscape.

The NHF scheme itself is designed to provide affordable housing solutions for Nigerian workers, requiring a monthly contribution of 2.5% of their income. Contributors gain access to housing loans of up to N50 million with interest rates as low as 6–9% after just six months of consistent contributions. For retirees or individuals aged 60 and above, the scheme guarantees a full refund of contributions, along with a 2% interest rate, even if they haven’t utilized the loan products.

The FMBN’s portfolio offers a diverse range of options, from the NHF Mortgage Loan and Individual Construction Loan to the Rent-to-Own and Home Renovation Loan schemes. New products, such as the Rental Assistance Loan and NHF Diaspora Mortgage Loan, are on the horizon, further expanding the bank’s commitment to addressing Nigeria’s housing deficit. Additionally, through construction finance initiatives like the Estate Development Loan and Cooperative Housing Development Loan, the FMBN is accelerating housing development nationwide.

Osidi also highlighted the NHF compliance achieved by 35 states and the Federal Capital Territory, as well as the Federal Integrated Staff Housing (FISH) programme, which provides housing solutions tailored for civil servants. With process improvements eliminating bureaucratic bottlenecks and ensuring financial accountability, the FMBN is positioning itself as a trailblazer in the housing sector.

This level of impact underscores the importance of the NHF scheme as a cornerstone of affordable housing in Nigeria. By offering practical solutions to the housing needs of millions, the FMBN has not only redefined its operational efficiency but also reignited hope for a future where homeownership is no longer a luxury but an attainable reality for every Nigerian worker. As the institution moves forward, its unwavering commitment to innovation and service excellence ensures it remains a beacon of progress in the nation’s quest for housing solutions.

The post FMBN Shatters Records with Over N12 Billion NHF Refunds in Just 10 Months appeared first on Housing TV Africa.