FMBN Collaborates with Shelter Afrique to Revive Abandoned Housing Projects Nationwide
The Federal Mortgage Bank of Nigeria (FMBN) has embarked on a rehabilitation process to revive approximately 46 abandoned housing projects nationwide. This initiative is set to be realized through a strategic partnership with Shelter Afrique Development Bank, a pan-African finance institution dedicated to supporting the housing and real estate sector across the continent.
The Managing Director of FMBN, Shehu Usman Osidi, shared this information during a recent meeting with the management of Shelter Afrique Development Bank in Abuja. Osidi emphasized the bank’s commitment to prioritizing the revitalization of these housing estates, recognizing their potential to provide shelter for many Nigerians.
Osidi revealed that the collaboration with Shelter Afrique would involve providing construction and mortgage financing to developers in Nigeria. The aim is to complete the abandoned projects and deliver finished housing units to meet the growing demand for shelter in the country.
“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,” stated Osidi.
He further explained that Shelter Afrique Development Bank offers infrastructure financing, making it a valuable partner in the effort to complete the projects and fulfill the housing needs of Nigerians. Nigeria, being the second-largest shareholder in Shelter Afrique with approximately 15% holding, is set to explore funding avenues to achieve its goal of delivering 100,000 housing units in 2024.
The FMBN is currently reviewing previously abandoned memoranda of understanding signed with Shelter Afrique, seeking to maximize the benefits of this renewed partnership. The collaboration aims to address the housing gap in Nigeria and leverage the over $25 billion in annual Diaspora remittances for housing development.
The CEO of Shelter Afrique, Thierno-Habib Hann, affirmed the organization’s commitment to collaborating with FMBN and other Nigerian institutions to tackle the housing deficit. Hann expressed readiness to work with the Nigerian government, citing the potential for significant investments, job creation, and sector growth.
Meanwhile, the FMBN reported a notable achievement, disclosing that it collected about N100 billion in remittances through the National Housing Fund (NHF) in 2023. The NHF, established by the FMBN, facilitates the flow of low-cost funds for long-term housing investment through monthly deductions from employees earning a basic salary. This marked the first time in the history of the bank that the annual NHF collection surpassed the N100 billion mark.
The collaborative efforts between FMBN and Shelter Afrique, along with the renewed focus on abandoned housing projects, signify a crucial step towards addressing housing challenges in Nigeria and creating sustainable solutions for citizens.
