The Federal Mortgage Bank of Nigeria (FMBN) has financed 9,076 housing units over the past two years, its Managing Director Shehu Osidi announced at FMBN Day during the 20th anniversary Africa International Housing Show (AIHS) in Abuja, according to reports by The Guardian Nigeria and ThisDay. Behind the headline number sits a sharper story for investors: FMBN’s annual delivery has tripled, its construction lending has more than doubled, and contributions to the National Housing Fund (NHF) have hit a record high — signs that Nigeria’s state-backed housing finance machine is finally gaining real traction, even as the country’s housing deficit continues to dwarf supply.
From 2,165 to 6,911 Units: Delivery Triples in a Year
The two-year total breaks down into 2,165 units financed in 2024 and 6,911 units in 2025 — meaning annual delivery more than tripled year-on-year, with the bank hitting 96% of its 2025 target of 7,200 homes, per ThisDay. The acceleration is being driven by a surge in construction finance: FMBN’s project loan disbursements to developers rose from ₦31.5 billion in 2024 to ₦79 billion in 2025, one of the highest levels of construction lending in the institution’s history, according to Nigeria Housing Market News.
Speaking in Abuja, Osidi framed the push around financial inclusion, noting that many low-income and informal-sector workers cannot accumulate the equity contributions demanded by conventional mortgage lenders — despite being among the country’s most productive citizens. The bank says it is redesigning mortgage products around the income realities of these households rather than traditional banking assumptions.
Record NHF Collections and Returning States
The bank’s funding base is also strengthening. National Housing Fund collections rose from ₦103 billion in 2024 to a record ₦152.4 billion in 2025 — more than 48% above the previous highest annual collection — while over 300,000 new contributors enrolled in the scheme within two years, ThisDay reported. Refunds to exiting contributors also climbed, from ₦13.2 billion paid to 40,426 beneficiaries in 2023 to ₦15.6 billion paid to 55,068 beneficiaries in 2025, a signal the bank points to as evidence of improved processing.
Confidence appears to be spreading at state level: Oyo State rejoined the NHF scheme after 27 years outside it, and Kano State signed a memorandum of agreement to return after more than two decades. FMBN is also backing President Bola Tinubu’s Renewed Hope Housing Programme with a ₦100 billion off-taker guarantee, and is currently financing 3,139 units under the programme — including ₦27 billion in construction finance for Ibeju-Lekki in Lagos, ₦19.9 billion for Karsana in Abuja, ₦10 billion for Port Harcourt, and ₦7.8 billion for Enugu, according to Leadership. New products aimed at widening inclusion include a Non-Interest Mortgage, a Diaspora NHF Mortgage, and a Rent Assistance Loan, alongside the bank’s established Rent-to-Own scheme, which put 367 beneficiaries into homes valued at over ₦7.1 billion in 2025.
FMBN Snapshot: The Numbers
| Metric | 2024 | 2025 |
|---|---|---|
| Housing units financed | 2,165 | 6,911 (96% of 7,200 target) |
| Project loan disbursements | ₦31.5 billion | ₦79 billion |
| NHF collections | ₦103 billion | ₦152.4 billion (record) |
| NHF refunds paid | ₦14.4bn to 44,333 beneficiaries | ₦15.6bn to 55,068 beneficiaries |
| New NHF contributors | 300,000+ enrolled over two years | |
| Renewed Hope support | ₦100 billion off-taker guarantee | |
The Scale Problem Nobody Should Ignore
The honest caveat: 9,076 units over two years remains a fraction of what Nigeria needs. Estimates of the national housing deficit vary widely — commonly cited figures range from 17 million to 28 million units — and commercial developers continue to battle borrowing costs of around 30%, foreign-exchange-driven construction cost inflation, and infrastructure gaps. FMBN’s single-digit NHF mortgages (and partnerships such as the Federal Ministry of Housing’s 9.75% mortgage scheme with First Bank, announced in June) matter precisely because they are the exception in a market where conventional finance prices most Nigerians out entirely. The question for the sector is whether the 2025 acceleration is a new baseline or a one-off surge.
💡 What this means for African property investors
A tripling of state-backed housing delivery and a 150% jump in construction lending signal that public housing finance in Nigeria is becoming a genuine demand engine for developers. For builders and off-plan investors, FMBN’s ₦79 billion construction loan book and ₦100 billion off-taker guarantee reduce sales risk on qualifying affordable projects — a rare de-risking mechanism in a high-interest-rate market.
But the deficit maths cuts both ways: even at the improved 2025 pace, supply barely dents demand, which supports long-run price and rental resilience in the affordable and mid-market segments. Investors should watch whether NHF collections keep growing, whether returning states (Oyo, Kano) translate into project pipelines, and whether disbursement momentum survives beyond the current administration’s housing push. Government-linked delivery targets are policy ambitions — not guaranteed outcomes.
📚 Sources
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Disclaimer: This article is for information only and does not constitute investment advice. Figures are drawn from official statements and media reports; readers should conduct independent due diligence before making any property or financial decisions.
Covering property development, investment, and market trends across the African continent. Research assisted by AI. All sources verified by the editorial team.
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