FMBN Reports ₦48.4bn Housing Finance Disbursement in Q4 2025 Milestone
Permanent Secretary of the Ministry of Housing and Urban Development, Dr. Muhammad Belgore,
The Federal Mortgage Bank of Nigeria (FMBN) has reported a significant operational milestone, nearly doubling its fourth quarter (Q4) 2025 financial inclusion targets. During a ministerial performance assessment held in Abuja, the apex mortgage institution revealed that it disbursed ₦48.4 billion in housing related financing, far exceeding the ₦25 billion benchmark established by the Central Results Delivery Coordination Unit (CRDCU).
The performance review, led by the Permanent Secretary of the Ministry of Housing and Urban Development, Dr. Muhammad Belgore, highlighted the bank's transition toward more inclusive financing models. This growth is attributed to the institutionalisation of new products, including the Diaspora Mortgage Loan and the Rent-to-Own scheme, alongside more aggressive loan recovery strategies.
Addressing the Affordability Barrier
Despite the record breaking disbursement, the Minister of Housing and Urban Development, Ahmed Musa Dangiwa, emphasized that "affordability remains the biggest barrier" to homeownership in Nigeria. While the FMBN maintains single digit interest rates at 6% per annum with 30 year tenors under the National Housing Fund (NHF), a substantial portion of the population remains excluded.
To bridge this gap, the FMBN is shifting focus toward the informal sector, which currently accounts for only 8.5% of total contributions. The bank's leadership, headed by Managing Director Shehu Usman Osidi, has directed zonal and branch managers to intensify mobilisation of artisans, traders, and small-scale entrepreneurs through digital integration and new field operations.
Strategic Reforms and Recapitalisation
The 2026 fiscal year marks a pivotal period for the FMBN as it prepares for a planned ₦500 billion recapitalisation exercise. This capital injection is intended to strengthen the bank’s capacity to act as the backbone of the "Renewed Hope" housing agenda.
Key strategic priorities for the new board include:
Digitalisation: Full digital integration of customer-facing services to allow contributors to monitor accounts and apply for loans entirely online.
Non Interest Mortgages: Collaboration with the Securities and Exchange Commission (SEC) to launch Sharia compliant financing products.
Large Scale Delivery: Moving to deliver 1,500 units in Ibeju-Lekki, Lagos, and replicating similar projects in Enugu and Port Harcourt.
The FMBN’s performance in the final quarter of 2025 demonstrates a positive trajectory for Nigeria’s mortgage liquidity. However, the institution's long-term impact will depend on its ability to successfully penetrate the informal economy and execute its ₦500 billion recapitalisation. For policymakers and investors, the shift toward non-interest mortgages and digital service delivery represents a necessary evolution in addressing Nigeria’s 28 million-unit housing deficit.
