FMBN Raises Mortgage Loan Limit to N50 Million
The Federal Mortgage Bank of Nigeria (FMBN) has announced an increase in its maximum mortgage loan limit from ₦15 million to ₦50 million, aiming to address the financial needs of middle- and high-income earners and counter rising construction costs.
Managing Director Shehu Usman Osidi disclosed the new loan threshold during an oversight visit by the House of Representatives Committee on Housing and Habitat at the bank’s headquarters in Abuja on Monday.
Osidi urged Nigerians to take advantage of this initiative and integrate into the country’s housing programs. He highlighted that under his leadership, the FMBN achieved an operational surplus of ₦4.9 billion in the first half of the year, a result of strategic financial reforms.
Challenges and Strategic Measures
Despite its achievements, Osidi identified funding shortages and a significant volume of non-performing loans (NPLs) as major obstacles. To address this, the FMBN has set up loan recovery task teams actively working to improve the bank’s loan portfolio and reduce NPLs.
He noted that estate development loans have historically contributed most to the bank’s NPLs. As a corrective measure, a ministerial embargo was placed on such loans over 12 years ago to curb their impact.
Call for Legislative Action
The FMBN Managing Director also advocated for a review of the National Housing Fund (NHF) Act to enhance the bank’s operational efficiency and ensure sustainable funding.
Legislative Oversight
The House Committee on Housing and Habitat, led by its chairman Hon. Abdulmumin Jibrin Kofa, representing Kiru/Bebeji Federal Constituency of Kano State, conducted the visit to assess the bank’s activities and performance.
This development marks a significant step toward bridging the housing deficit in Nigeria, offering expanded opportunities for citizens to access affordable housing finance.
