The Federal Government has approved a N750 billion recapitalisation of the Federal Mortgage Bank of Nigeria in a move aimed at widening access to home ownership and strengthening the country’s housing finance framework.
The plan is designed to reposition the bank to meet rising demand for affordable mortgages. For years, the institution has overseen the National Housing Fund and provided mortgage loans to contributors nationwide. Yet its paid up capital of about N2.56 billion has remained modest compared to the scale of Nigeria’s housing deficit.
Officials say the new capital injection will significantly improve the bank’s lending capacity. With a stronger financial base, the bank is expected to finance more housing projects and approve a larger volume of mortgage applications under the National Housing Fund scheme.
Managing Director Shehu Osidi is leading the recapitalisation process, which has received clearance from the Federal Executive Council. The initiative is being coordinated with the Ministry of Finance, the Central Bank of Nigeria, the Ministry of Finance Incorporated, and the Bureau of Public Enterprises.
Industry analysts note that recapitalisation will enable the bank to extend longer term loans at more affordable rates. It is also expected to support large housing developments across states and stimulate growth in construction and related sectors.
In parallel with the capital restructuring, the bank has introduced operational reforms to improve service delivery. These include the rollout of a modern core banking system, digital access channels such as USSD services, and tighter internal controls aimed at improving transparency and processing times.
Recent financial results indicate improved operating performance, supported by stronger systems and governance structures.
Housing finance remains a critical component of economic development. Expanded mortgage access is expected to provide relief to workers seeking to own homes, while also creating jobs and supporting local industries tied to building and infrastructure. The recapitalisation signals a renewed effort to align the mortgage bank’s capacity with its national responsibility.
