FG To Revive 46 Abandoned Housing Projects Nationwide

Federal Mortgage Bank of Nigeria (FMBN) has taken a significant step towards reviving about 46 housing projects that have been abandoned across the country.

Gatekeepers News reports that to achieve this, the bank has partnered with Shelter Afrique Development Bank, a finance institution that focuses on supporting the development of the real estate and housing sector in Africa.

The Managing Director of FMBN, Shehu Usman Osidi, revealed this information during a recent meeting held between the management of Shelter Afrique Development Bank and FMBN in Abuja. As per Osidi, reviving the housing estates is one of the top priorities of the bank.

The collaboration between FMBN and Shelter Afrique Development Bank will help to provide financing for both construction and mortgages to developers in Nigeria. This intensified partnership will aid in providing quality and affordable housing for Nigerians.

He said, “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.

“We have explored the product offerings of Shelter Afrique Development Bank and found out that they offer infrastructure financing, so we want to bring them on board to offer this financing so we can finish up the projects and hand them over to many Nigerians who need shelter.”

Osidi further noted that Nigeria, the second largest shareholder in the bank with about 15 per cent holding, will explore areas of funding to achieve its target of delivering 100,000 housing units to Nigerians this year.

He mentioned that the FMBN is currently reviewing previously abandoned memoranda of understanding that were signed with the organisation. This review aims to explore the benefits that Nigerians could gain from this renewed partnership.

Also speaking, the CEO of Shelter Afrique, Thierno-Habib Hann, said the organisation was in Nigeria to promote its development financing agenda and identify Nigeria as a destination for investments with over $25bn in Diaspora remittances each year.

He said, “We are ready to collaborate with FMBN and other institutions across Nigeria to address the housing gap. The challenges are there and the opportunities are also there. As a development finance institution, we are very well positioned to collaborate with the government of Nigeria and in this trip, we met all the leadership including the vice president of the Federal Republic of Nigeria who is fully committed to driving the growth of the sector and invest more in the sector knowing that housing creates jobs.”