The Federal Mortgage Bank of Nigeria (FMBN), formerly known as the Nigerian Building Society (NBS), was founded in 1956 as a joint venture by the Federal and Eastern Governments of Nigeria, and the Commonwealth Development Corporation. The Federal Government acquired the NBS after the introduction of the Indigenization Policy and renamed it the Federal Mortgage Bank of Nigeria as a result (FMBN).
The FMBN Act 82 [1993] and the Mortgage Institutions Act 53 [1989] were both promulgated in 1994, giving FMBN the status of an apex mortgage institution in Nigeria. Additionally, it started the management and administration of the National Housing Fund (NHF), a contributory savings program created by Act 3 of [1992]. A social savings program is the National Housing Fund (NHF) designed to mobilize long-term funds from Nigerian workers, banks, insurance companies and the Federal Government to advance concessionary loans to contributors.
In order to carry out its mandate, the Bank list capital market instruments like mortgage-backed securities and bonds for sale to institutional investors like pension funds, insurance companies, securities firms, and banks in order to raise long-term funds for its secondary mortgage lending activities. This is done to guarantee a steady flow of liquidity to finance the origination of first mortgage loans.
After the housing sector in Nigeria underwent reform, FMBN was reorganized as a Federal Government-Sponsored Enterprise (FGSE) with a stronger emphasis on its capital market and secondary mortgage functions. By focusing on other areas of business, such as commercial on-lending for housing and refinancing commercial mortgages created by mortgage loan, FMBN is expanding its functions from just social housing on-lending under the NHF.
In order to provide affordable mass housing for the low income end of the market, the Bank’s current business strategy focuses on partnerships with national and international organizations with the necessary financial and technical resources.
FMBN is one of the key stakeholders in the housing and construction sector whose presence at the 16th AIHS will definitely speak volume.
The apex mortgage institution at the AIHS will avail participants of its plans in the area of affordable and sustainable housing provision following the recent change of leadership of the mortgage institution. It will also participate in the political leaders’ forum to share expert views on best ways to enhance Nigerians’ housing experience on a broader basis.
