The Federal Mortgage Bank of Nigeria (FMBN) is processing about N8.3 billion in National Housing Fund (NHF) mortgage applications for staff of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), as the government steps up efforts to expand access to homeownership for workers.
The applications form part of a housing arrangement under the Federal Government’s ‘Renewed Hope Cities and Estates Programme’, which has allocated housing units to NMDPRA staff in Abuja, Kano and Lagos.
Shehu Usman Osidi, managing director and chief executive of FMBN, disclosed this in Abuja during the presentation of allocation letters to beneficiaries.
According to Osidi, NMDPRA staff have subscribed to 359 housing units at Karsana, Abuja, and 14 units at Janguza, Kano, while 197 NHF mortgage applications worth approximately N8.3 billion are being packaged for submission to FMBN.
CityCode Mortgage Bank is working with the beneficiaries to process the applications, while FMBN will provide financing for applicants who meet the eligibility requirements.
The development highlights the role of institutional and employer-backed housing schemes in creating a pipeline of mortgage borrowers in a country where access to long-term housing finance remains a major constraint to homeownership.
FMBN’s involvement also extends beyond individual mortgages. Osidi said the bank provided a N100 billion off-taker guarantee for the Karsana project, alongside N19.9 billion in direct funding.
The financing structure is designed to provide developers with greater certainty over demand, support construction financing and allow eligible workers to acquire completed homes through mortgages.
‘FMBN is proud to be part of the journey that gave birth to this event today and we remain committed to supporting the Renewed Hope Cities and Estates programme in Karsana and across the country,’ Osidi said.
The Karsana project is therefore being supported through a combination of project-level funding, an off-take guarantee and individual mortgage financing, linking housing construction with the eventual ability of workers to purchase the units.
At the NMDPRA event, 430 staff received allocation letters for housing units across the participating locations.
The initiative brings together the Federal Ministry of Housing and Urban Development, FMBN, Family Homes Funds Limited, NMDPRA Staff Cooperative Society, CityCode Mortgage Bank and private developers.
Muttaqha Rabe Darma, minister of Housing and Urban Development, said the administration was committed to expanding the supply of decent and affordable housing.
Darma also announced plans for a social housing scheme targeting 100 housing units in every Local Government Area across the country.
The proposed scheme would broaden the government’s housing intervention beyond organised workers and institutional beneficiaries to a wider segment of the population.
The minister called for stronger collaboration among government agencies, financial institutions, developers and other stakeholders, saying the pooling of resources and expertise would help expand affordable housing delivery.
For FMBN, the NMDPRA arrangement is part of a broader effort to develop different financing channels around changing housing needs.
Osidi said the bank was working with developers, primary mortgage banks, cooperative societies and employers to increase the supply of affordable housing and improve access to mortgage finance.
He also pointed to FMBN’s recently launched Diaspora Mortgage Loan and its planned Rent Assistance Product as additional measures aimed at addressing different housing needs.
The NMDPRA housing arrangement comes as the government seeks to use institutional partnerships to overcome some of the financing constraints that have slowed housing delivery.
Rabiu Abdullahi Umar, chief executive of NMDPRA, described the initiative as an important milestone for the Authority and its employees, commending the housing ministry, FMBN and other partners for their collaboration.
Beneficiaries are expected to work with the NMDPRA Staff Cooperative Society, CityCode Mortgage Bank, FMBN and the developers to complete mortgage documentation and other requirements before financing is concluded.
The immediate focus is therefore on converting the N8.3 billion mortgage pipeline into completed transactions, while the wider programme seeks to connect housing construction, institutional demand and long-term mortgage finance.