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The FMBN has offered approximately N100 billion in off-takers guarantee to a group of developers constructing around 100,000 homes nationwide.
During a visit by Ekiti State governor, Abiodun Abayomi Oyebanji, the managing director of FMBN, Shehu Osidi, revealed this information at the Bank's headquarters in Abuja.
He also stated that the Bank is prepared to collaborate with local residents and state governments to offer mortgage financing to eligible individuals.
Osidi clarified that the FMBN is a mortgage institution that offers financial support to citizens.
He revealed that, as a bank, they have also expanded into construction financing due to the unaffordability of houses for low and medium-income earners.
The FMBN is willing to continue financing construction projects in states as long as residents or state governments can ensure that the houses are affordable for potential buyers.
Emphasizing the FMBN's role as a key partner in the government's initiative to transform the country into a major construction center, the managing director stated that the FMBN's mortgage financing options are affordable.
He explained that the Bank provides mortgage financing at a single-digit interest rate, which is the lowest in the country. While commercial banks charge between 25 to 28 percent interest, the FMBN offers mortgages at six percent.
Additionally, their construction finance window operates at 9.5 percent, making them the only bank in Nigeria to finance construction and provide mortgages at single-digit interest rates.
The managing director stressed that affordability is relative and depends on the type of house being built.
He affirmed that all houses financed by the FMBN are affordable, aligning with the Bank's primary goal of providing mortgage financing to Nigerians at a low interest rate.
“We have different types of loans. We have a window for what we call self-employed Nigerians based on their income. If they agree on what they want to contribute to the national housing fund every month and have contributed for about six months, they become eligible to apply for our mortgage loans.
He mentioned that individuals can qualify for mortgages based on their financial capacity. He also mentioned a special loan program for individuals with a Certificate of Occupancy who want to build their own houses.
The governor of Ekiti state, represented by his special adviser, Bureau of Housing and Mortgage Development, Dr. Gboyega Oloniyo, emphasized the government's focus on providing shelter.
He highlighted the partnership with FMBN to offer housing units to contributors of the federal housing fund.
Expressing concern about the housing shortage in Ekiti state, the governor pledged to address this by providing approximately two thousand housing units.
