The Federal Mortgage Bank of Nigeria (FMBN) on Saturday commissioned 108 units of Omowumi Ilorin Housing Estate Project in Ilorin, Kwara state. This initiative, fully financed under the FMBN’s Cooperative Housing Development Loan (CDHL) window, aims to promote financial inclusion and expand mortgage financing homeownership opportunities, particularly for individuals in the informal sector.
In his speech, the executive director of Loans and Mortgage Services Federal Mortgage Bank of Nigeria, Mall Lukman Olayiwola Mustapha said the Cooperative Housing Development Loan (CDHL) program has become a significant platform for the FMBN to drive home ownership in Nigeria by providing housing development finance to Cooperative Societies at a 10% per annum interest rate. Additionally, members of these societies can access mortgage loans at a 6-7% per annum interest rate through accredited Primary Mortgage Banks (PMBs), enabling them to purchase the houses developed under the program.
Notably, the FMBN’s cooperative project with Omowunmi Multipurpose Cooperative Union Limited comprises 108 housing units, including 54 units of 2-bedroom and 54 units of 3-bedroom bungalows. The project, valued at approximately N500 million, also encompasses essential infrastructure such as road networks, drainages, electricity, and water supply, creating a conducive and livable environment.
Mustapha said , FMBN’s initiative is unique in several ways. Firstly, it demonstrates the bank’s commitment to meeting the needs of National Housing Fund (NHF) contributors and promoting inclusive homeownership financing. It accommodates individuals who do not meet traditional income threshold requirements or have regular bank accounts. Secondly, it highlights the bank’s focus on bringing the informal sector into the NHF to expand its resource base and provide homeownership opportunities to artisans, technicians, traders, market men and women, and the self-employed. Lastly, the project emphasizes the effectiveness of NHF schemes in helping operators in the informal sector become proud homeowners.
Mustapha commended the President and members of the Executive Committee of Omowunmi Multipurpose Cooperative Union Limited for successfully delivering the project despite challenges. The FMBN also appeals to the Executive Governor of Kwara State, Alhaji Abdulrahman Abdulrazak, to approve the construction and tarring of the road leading to the estate, further facilitating access and promoting development in the area.
The FMBN remains the sole institution in Nigeria offering affordable mortgages at single-digit interest rates between 6-7%. With products such as the Individual NHF Loan, Individual NHF Construction Loan, Home Renovation Loan, and Rent-to-Own, the bank continues to develop affordable solutions to meet the diverse needs of contributors across different income brackets.
The FMBN’s partnership with Kwara State has been mutually beneficial, with the state’s workforce consistently contributing to the NHF scheme. Over N8.2 billion in facilities have been committed to delivering 2,096 housing units in Kwara State. In addition, N3.35 billion has been granted as Home Renovation Loan facilities, benefiting 4,744 members of the Kwara State workforce. Furthermore, N864.9 million has been extended to 158 NHF contributors in Kwara State under the Rent-to-Own Scheme.
The FMBN’s efforts extend beyond Kwara State, with ongoing initiatives across Nigeria to address the housing deficit and provide affordable homes. Numerous estate projects have been commissioned in different states, and within the past 12 months, the bank has approved approximately N14 billion in NHF Loans, N2.5 billion in Rent-to-Own, and N200 million in Individual Construction Loans, benefiting over 2
Speaking earlier the President of Omowunmi Multipurpose Cooperative Union Limited, Alhaji Omo Adua appreciated FMBN for the privilege given to his organization and charged other cooperative organizations to see Federal Mortgage Bank Nigeria as a partner in progress
You have given the people in the informal sector hope to become house owners and this single initiative will go a long way to reduce Nigeria’s House deficit, he said
On his part, Kwara State Governor AbdulRahman AbdulRazaq represented by Speaker Kwara State House of Assembly, Rt. Engr. Saliu Yakubu Danladi said Collaborating with organizations like Omowumi Ilorin Cooperative Society and the Federal Mortgage Bank (FMBN) can be a significant step towards reducing the housing deficit and providing affordable housing for Kwarans
Partnerships between the state government and financial institutions like FMBN can help facilitate access to mortgage financing and promote the construction of affordable housing projects. By working together, you can leverage the resources and expertise of both parties to develop sustainable solutions and make homeownership more accessible for the people in the state.
It’s crucial to ensure that the partnership is built on mutual trust, transparency, and a shared commitment to addressing the housing needs of our citizens. By actively engaging with stakeholders, including housing cooperatives, financial institutions, and relevant government agencies, you can develop comprehensive strategies to reduce the housing deficit and improve the quality of life for your residents.
