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Introduction: In this interview, Shehu Usman Osidi, Managing Director/Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), discusses the Diaspora National Housing Fund, the Bank’s contribution to the Renewed Hope Housing Agenda, and his outlook for the Nigerian housing sector. He spoke with Jide Akintunde, Managing Editor of Financial Nigeria publications.

Jide Akintunde (JA): Congratulations on the recent launch of the Diaspora National Housing Fund. What financial and development challenges is the fund designed to address?

Shehu Usman Osidi (SUO): The Federal Mortgage Bank of Nigeria (FMBN) launched its official Diaspora National Housing Fund (NHF) Mortgage Loan in London on 7 August 2026. The initiative aims to address several critical barriers that Nigerians living abroad traditionally face when trying to build or buy property back home. Many diaspora Nigerians have lost thousands of dollars by sending money to relatives, friends, or unverified local developers who mismanaged funds or disappeared entirely. 

Some of the challenges the loan addresses include fraud and unreliable intermediaries, abandoned projects and substandard buildings, and exorbitant commercial interest rates from other financial institutions. It also addresses limited access to long-term local financing and the difficulty of managing property transactions remotely. 

The NHF Diaspora Mortgage plans to address these and other financial and development challenges that Nigerians living abroad face when trying to purchase property in the country.

JA: Financial constraints remain a major driver of Nigeria’s housing deficit, even though other structural issues also impede Nigerians’ homeownership. How is the FMBN addressing these financial barriers?

SUO: The Bank addresses steep financial barriers in the Nigerian real estate sector by offering subsidised products designed to bypass the traditional roadblocks of money deposit banks. Our operations provide lower local commercial borrowing rates, remove upfront equity burdens, and offer longer payment cycles through strategic financial restructuring.

Most commercial lenders require borrowers to repay loans within 5 to 10 years, pushing monthly payments beyond what middle-income salaries can support. At FMBN, we extend loan tenors to up to 30 years for local contributors (or up to a retirement age of 60). This drastically reduces the monthly financial burden, spreading the cost of the home across a person’s entire career.

JA: You have emphasised the importance of stakeholder collaboration for sustainable housing development. How is FMBN engaging with public- and private-sector stakeholders to advance this agenda?

SUO: FMBN recognises that no single institution can bridge the country's massive housing deficit. Under the current strategic framework, the Bank drives Public-Private Partnerships (PPPs) and ecosystem alignment to make affordable housing a reality. FMBN collaborates closely with like-minded government agencies, ministries, departments, and regional bodies to streamline bureaucratic processes and expand financing options for public servants.

A good example of the fruits of such collaboration is a partnership with the Federal Government Staff Housing Loans Board (FGSHLB), where, in April this year, FMBN signed a historic ₦10 billion housing loan MoU with the FGSHLB to significantly ease access to homeownership for federal civil servants.

Additionally, through institutionalised dialogue with the Mortgage Banking Association of Nigeria (MBAN), the Bank meets regularly with executive operators to identify operational friction, address slow loan disbursement, and build an efficient, digitised mortgage transmission system across the entire value chain.

In addition to the above, the Bank funds, hosts, and spearheads knowledge-sharing and policy summits, notably utilising the annual FMBN Day at the Africa International Housing Show (AIHS) in Abuja.

JA: Could you highlight some of the key achievements recorded by FMBN in recent years under your leadership?

SUO: Since my assumption of office as Managing Director/Chief Executive in February 2024, the Bank has achieved significant milestones that align with the Federal Government's Renewed Hope Agenda under President Bola Ahmed Tinubu. We can share some of these achievements across our various areas.

The first is the reduction in loan turnaround times and faster approvals. When we came on board, we found that there was a need to reduce the turnaround time for National Housing Fund (NHF) loan approvals by 50%. By doing this, we have reduced processing time from 3–4 weeks to two weeks, with the sole objective of meeting customer expectations and satisfaction. This has greatly enhanced the customer experience and confidence in the Bank's operations.

Second is digitalisation and automation. Partnered with Primary Mortgage Banks (PMBs) to move application processes online and target a paperless workflow. This has streamlined loan applications, as customers no longer need to visit the Bank to complete transactions.

Third, we have improved our loan recoveries. We established six loan-recovery task teams that have successfully recovered over ₦16 billion from non-performing and stalled housing projects.

Fourth, we have become stricter with developer accountability. To ensure this, we instituted rigorous due diligence and site verification, taking over house allocations directly and blacklisting non-performing developers.

Fifth, we also instituted transparency initiatives. This includes major data transparency projects, such as preparing the National Mortgage Registry for deployment.

Last but not least is the launch of the landmark diaspora mortgage product. This marks a significant milestone in the Bank’s efforts to expand access to mortgage finance beyond Nigeria’s borders. It demonstrates continuity of operational initiative despite the Bank’s leadership transition. The initiative guarantees that diaspora Nigerians have a secure, institutional pathway to own homes and invest in Nigeria’s housing sector.

JA: Why should Nigerians subscribe to the NHF rather than to other available financing schemes?

SUO: Subscribing to the National Housing Fund scheme, in line with the statutory obligation under the NHF Act of 1992, as managed by FMBN, is one of the most effective ways for Nigerians to transition from renting to homeownership. By contributing just 2.5% of their monthly basic income, subscribers unlock financial benefits unavailable elsewhere in the country's real estate market. 

The reasons why Nigerians should subscribe to the NHF Scheme include access to the lowest interest rates in Nigeria, minimal equity (down payment) burden, and long repayment periods (up to 30 years). Other benefits include a range of subsidised product options, such as our Rent-to-Own, Home Renovation Loan, Individual Construction Loan, and NHF Loan products; inclusivity for the formal and informal sectors; and a guaranteed refund with 2% interest upon retirement or on attaining 60 years of age.

JA: Given Nigeria’s considerable housing deficit, FMBN would ideally broaden its interventions to reach millions more Nigerians. What key challenges does the Bank face in delivering its mandate at the required scale?

SUO: While the Bank has recorded recent breakthroughs in expanding access to housing finance, it operates in a highly challenging macroeconomic and structural environment. Bridging Nigeria's estimated 14.925 million-unit housing deficit poses several severe operational and systemic roadblocks. 

The primary challenges FMBN faces in fulfilling its national mandate include under-capitalisation, legacy non-performing loans (NPLs), macroeconomic pressures, outdated legal and regulatory frameworks, and stringent land-tenure laws and bureaucracy.

The scale of these challenges requires corresponding institutional capacity, capital, reforms and ecosystem-wide collaboration.

JA: Digital transformation is reshaping service delivery and operational efficiency across the financial and housing sectors. How is FMBN leveraging technology to innovate its processes and strengthen the impact of its interventions?

SUO: FMBN has undergone a significant digital shift, transitioning from rigid manual processes to a fully automated framework. Under the current Executive Management leadership, the Bank has integrated technology across its core services to improve efficiency, trust, and inclusivity.

The primary ways FMBN leverages technology to improve its processes include the deployment of a core banking application. For decades, the bank operated with segmented, manual systems. The rollout of its Core Banking Application seamlessly connects the Bank's operations in real time. This back-end software automates key workflows, including streamlined loan processing and digital credit scoring.

We have also deployed robust internet banking and payment gateways. The launch of the FMBN Internet Banking Platform enables NHF contributors to manage their obligations remotely. Rather than visiting a physical branch, subscribers can register independently, view contribution statements, apply for refunds, and track loan payments online 24/7.

A dedicated mobile application enhances our offering of convenience and functionality. The bank utilises the FMBN Mobile App, available on the Google Play Store and Apple App Store. The app serves as a pocket companion for NHF contributors, enabling them to check their transaction histories instantly and use built-in home affordability calculators to estimate the financing they qualify for.

We have also acquired cloud infrastructure and disaster recovery solutions. The value of the Bank's transition to a modern cloud-based data backup infrastructure was demonstrated following a fire at the FMBN Abuja headquarters. Because the Bank had migrated its operational registries and customer information to the cloud, all critical transaction and subscriber records remained secure, thereby avoiding catastrophic data loss. 

Our launch of a centralised repository and diaspora products – the National Mortgage Registry – puts FMBN in a dominant position within the housing sector’s information systems. This digital registry serves as a central repository for all mortgage records in Nigeria, dramatically improving tracking and enabling transparent auditing. The Bank’s Diaspora Mortgage Loan Portal also established modern online frameworks for Nigerians living abroad, offering secure, fully transparent cross-border financing windows to invest easily in the Renewed Hope Housing Agenda.

JA: What is your outlook for Nigeria’s housing market and for FMBN?

SUO: Nigeria’s housing market offers a significant long-term opportunity, but also poses major affordability and supply challenges. The latest data from the National Housing Data Technical Committee place Nigeria’s quantitative housing deficit at 14.925 million units, while an additional 15.2 million existing housing units are classified as structurally inadequate. Together, these figures underscore the scale and complexity of Nigeria’s housing challenge.

The relationship between Nigeria’s housing market and the Federal Mortgage Bank of Nigeria is fundamental. As the apex mortgage institution, FMBN plays a critical role in addressing structural gaps in housing finance, expanding access to affordable mortgages and supporting increased housing supply.

The outlook for the housing market is therefore one of continued strong demand, driven by population growth, urbanisation and the growing need for decent, affordable housing. However, affordability will remain a key challenge, alongside construction costs, access to serviced land, infrastructure constraints and limited access to long-term housing finance.

The challenge is not simply about building more houses; it is also about improving the existing housing stock, expanding affordable housing finance and addressing the infrastructure, land and affordability constraints that prevent Nigerians from accessing decent homes.

For FMBN, this presents both a responsibility and an opportunity to deepen housing finance, strengthen partnerships across the housing value chain, expand access for underserved and informal-sector workers, leverage technology and data, and support sustainable housing delivery at scale. The Bank’s National Mortgage Registry, which is ready for deployment, is also expected to enhance transparency and data-driven decision-making in the mortgage market.

Ultimately, FMBN’s outlook is closely tied to the transformation of Nigeria’s housing market. As the sector continues to evolve, the Bank will remain a key enabler of affordable housing finance and sustainable homeownership for Nigerians.