Nigeria's Housing Deficit: Mortgage Bank Seeks Budget Office Support for Solutions

The Federal Mortgage Bank of Nigeria (FMBN) has appealed to the Budget Office of the Federation for increased financial support to address the country's critical housing shortage. During a courtesy visit on Monday, August 11, 2025, led by the Managing Director/CEO, Mr. Shehu Usman Osidi and Board Chairman Nasir Yusuf Gawuna, FMBN executives met with Director-General of the Budget Office of the Federation, Mr. Tanimu Yakubu, to discuss key challenges and strategic objectives.

A primary concern raised by Mr. Shehu Usman Osidi was the urgent need for FMBN recapitalization. He argued that the bank's current capital base of N5 billion, with only N2.5 billion paid up since 1993, severely limits its ability to provide affordable housing finance to low and medium-income earners. Mr. Shehu Usman Osidi requested guidance on accessing existing budgetary provisions for recapitalization to expand the bank's mortgage lending capacity.

The delegation also addressed a long-standing issue involving a N100 billion bond issuance from 2007, intended to finance government house acquisitions by public servants. FMBN served as the Special Purpose Vehicle for the transaction, which faced funding shortfalls due to unpaid subsidies from the Federal Capital Territory Administration (FCTA). Mr. Shehu Usman   Osidi expressed optimism that a recent settlement agreement between the Debt Management Office (DMO) and Aso Savings and Loans Plc, a major obligor in the transaction, could resolve the issue.

Another critical point of discussion was the N18.6 billion is wrongful deductions made by the Office of the Accountant General of the Federation from National Housing Fund (NHF) collections. Mr. Shehu Usman Osidi emphasized that these trapped funds hinder the bank's operational liquidity and its ability to finance ongoing housing projects, appealing for the Director-General's intervention to secure their release.

Furthermore, the FMBN delegation highlighted the issue of staff welfare, noting that the last salary review at FMBN took place thirteen years ago in 2012. He requested support for improving salaries and wages to ensure staff remain motivated and capable of delivering on the bank's mandate.

In response, the Director-General, Mr. Tanimu Yakubu assured the FMBN of the Budget Office's support, confirming budgetary allocations for FMBN, including interest expenses related closely to a N3 trillion for six financial institutions. He clarified that banks are not state-owned, FMBN is a regulated financial institution under the supervision of the Central Bank of Nigeria (CBN). Mr. Tanimu Yakubu emphasized that unless FMBN declares dividends, it should not use its funds to finance the Federal Government budget.

The meeting concluded with both parties reaffirming their commitment to collaboration, recognizing the Budget Office as a strategic partner in FMBN's mission to make home ownership accessible and affordable to Nigerians.

Dr. Afolabi Olajuwon, fnipr
Head, Information & Public Relations