The Federal Mortgage Bank of Nigeria (FMBN) plans to finance the construction of student hostels and staff quarters for university workers, with the aim of benefiting both current and future beneficiaries of its loan scheme.
Shehu Osidi, Managing Director of FMBN, announced this initiative during the 2024 FMBN Management Retreat, themed “Improving Efficiency and Customer Service Delivery for Developmental Impact.” Osidi detailed that the FMBN intends to partner with universities to provide financing for hostels and staff accommodations, integrating students into the National Housing Fund (NHF) system while they are still in school.
The NHF is funded by a 2.5% salary deduction from Nigerian workers, who are the ultimate beneficiaries of this system. Osidi emphasized the importance of engaging students early so they can become familiar with FMBN’s services before they enter the workforce.
FMBN is also set to sign a Memorandum of Understanding (MoU) with Shelter Afrique Development Bank to explore funding for new initiatives such as rental housing and student hostels.
Under the Federal Ministry of Housing and Urban Development’s Renewable Agenda, FMBN has provided 100 billion naira to a consortium of developers for housing construction, with the bank pledging to offer mortgage finance for the completed projects.
Osidi addressed the need for improved service delivery and efficiency at FMBN, acknowledging past delays and challenges in loan processing. The retreat aims to pinpoint issues and devise strategies to enhance operational efficiency and customer service.
He urged staff to be innovative and proactive in identifying areas for improvement, ensuring that FMBN can better serve its customers and fulfill its mandate of delivering affordable housing across Nigeria.