In a renewed push to address Nigeria’s mounting housing deficit, the Federal Government has directed the Federal Mortgage Bank of Nigeria (FMBN) to collaborate directly with state governors on the development of bankable, affordable housing projects across the country.
The directive was issued by the Minister of Housing and Urban Development, Ahmed Dangiwa, during the Federal Mortgage Bank of Nigeria Day at the 19th Africa International Housing Show (AIHS), held in Abuja. Represented by his Special Adviser on Media and Strategy, Mark Chieshe, the minister emphasized the need for synergy between federal and state actors in delivering sustainable and affordable homeownership solutions to Nigerians.
The initiative is part of the government’s “Renewed Hope State-by-State Homeownership and Housing Development Campaign,” designed to close the gap between federal policy and local implementation. Dangiwa explained that the new campaign aims to take housing solutions to the grassroots while ensuring that federal housing institutions like FMBN fully engage in community-level partnerships.
“The biggest barrier to homeownership in Nigeria is not the absence of houses, but the inability of citizens to afford them,” Dangiwa stated. “While we are addressing the supply side, cost remains a major hurdle. FMBN must play an active role in bridging this affordability gap.”
FMBN, long regarded as Nigeria’s primary vehicle for affordable mortgage financing, is now being tasked with taking its services and products to all 36 states. The minister urged the bank to work closely with state governors to unlock land for development, embed technical teams for planning, and structure feasible housing finance frameworks for the masses.
According to Dangiwa, “This is an opportunity for FMBN to showcase its products, bring the National Housing Fund (NHF) closer to contributors, and eliminate access and knowledge gaps across states.”
He also assured that the Federal Government would continue to support FMBN through strategic policies, reforms, and funding to ensure it fulfills its critical role in delivering affordable housing finance.
In his address, the Managing Director/CEO of FMBN, Mr. Shehu Osidi, stressed the urgent need for the recapitalisation of the bank, noting that the institution’s current paid-up capital of N2.5 billion is grossly inadequate for its nationwide mandate.
“This figure has remained unchanged for decades and falls significantly short of Central Bank of Nigeria (CBN) requirements,” Osidi said. “Even smaller primary mortgage banks have larger capital bases.”
The CBN, he explained, mandates N100 billion for wholesale and N10 billion for retail development finance institutions. By comparison, state and national PMBs currently require a capital base of N2.5 billion and N5 billion respectively — already surpassing FMBN’s standing, despite its national coverage responsibilities.
Osidi warned that the bank’s limited capital base is restricting its ability to mobilize long-term funding both domestically and internationally. He stressed that recapitalisation is not just about growth, but about transforming FMBN’s business model to align with global standards and effectively support the Federal Government’s ambition of a $1 trillion economy.
“We cannot run a national institution on a local budget,” Osidi declared. “Recapitalisation will not only increase our financial strength but also redefine our operational model to meet the housing needs of millions.”
With this new directive, the Federal Government is signaling a more integrated approach to solving the housing crisis — one that moves beyond policy pronouncements to real collaboration with sub-national actors. By activating FMBN at the grassroots and focusing on affordability and access, the administration hopes to create a more inclusive path to homeownership for Nigerians.
As the Renewed Hope campaign takes off in the coming months, stakeholders are looking to see how quickly partnerships with states will be formed and how effectively the FMBN can overcome its structural challenges.