For decades, millions of Nigerian workers have struggled to own homes despite years of hard work and savings. The Federal Mortgage Bank of Nigeria, through the National Housing Fund Scheme, is renewing efforts to change that narrative under the leadership of Shehu Osidi, implementing reforms that are rebuilding trust and expanding access to affordable housing finance, reports Punch.
For decades, the dream of homeownership has remained elusive for millions of Nigerian workers. The Federal Mortgage Bank of Nigeria was established with a mandate to change that narrative, ensuring that Nigerians, particularly those in the low- and middle-income brackets, have access to affordable housing finance.
That vision, which dates back to 1992 with the creation of the National Housing Fund Scheme, is being renewed with greater vigour under the leadership of Shehu Osidi, the Managing Director/Chief Executive of FMBN.
“In recent years, this mandate has gained renewed momentum under the leadership of Osidi and his management team. Since their inauguration, they have embarked on bold reforms to reposition the bank, deepen transparency, and enhance service delivery,” read a statement by the bank.
One of the most visible signs of this transformation is the marked increase in NHF registrations nationwide. “According to FMBN’s January to July 2025 operational performance report recently released, more than 76,000 new workers joined the scheme within the past seven months, a significant jump that underscores growing confidence in the Fund.”
Despite this progress, Osidi acknowledged that millions of Nigerian workers remain outside the NHF fold. “When set against Nigeria’s massive workforce estimated at over 70 million people, this figure is still a drop in the ocean. The reality is that millions of Nigerian workers remain outside the NHF ship, either due to scepticism, misinformation, or sheer lack of awareness.”
Osidi explained that “the National Housing Fund Scheme was created to solve Nigeria’s chronic housing challenge. The idea behind its establishment was simple: if Nigerian workers each contributed a small fraction of their monthly income, the pooled resources could create a revolving fund for affordable housing loans.”
He stressed that “the NHF Scheme is therefore not just a savings programme but also a form of Social Security for Nigerian workers. It is designed to protect workers from the vulnerability of rent dependency, housing insecurity, and the high cost of commercial mortgages provided by other mortgage and financial institutions.” With repayment periods stretching as long as 30 years and interest rates capped at six per cent per annum, Osidi described the Fund as “the most worker-friendly housing finance product in Nigeria.”
He added that contributors could access “up to N50 m for housing development or outright purchase of a property”, while highlighting that “many Nigerian workers have taken advantage of the opportunity and realised their homeownership aspirations through this scheme.”
“The NHF Scheme is designed in a way that any Nigerian up to the age of 18 years is eligible to register and begin contribution of 2.5 per cent of their monthly income immediately,” the FMBN boss stated.
As a registered contributor, “it opens up the window for the contributor to access any of FMBN’s range of products after consistently contributing for a minimum period of six months.
“These products include the NHF Loan, Rent-To-Own, and Home Renovation Loan. Others are the Individual Construction Loan and Cooperative Housing Development Loan.”
Osidi further disclosed that FMBN “recently announced plans to launch the Diaspora Mortgage Loan and Non-Interest Loan. All these products have been designed to ease the struggles of homeownership faced by the majority of Nigerians who fall within the low- and middle-income segments.” Despite its potential, Osidi lamented that “misconceptions about the fund continue to thrive, discouraging participation and denying workers access to one of the most affordable mortgage products in Africa.”
