As part of efforts to mobilise resources towards meeting the housing needs of Nigerians, the Managing Director/Chief Executive of the Federal Mortgage Bank of Nigeria (FMBN), Mr. Shehu Usman Osidi has expressed the Bank’s readiness to partner with Shelter Afrique Development Bank, a foremost Pan-African housing finance institution.
The agreement was reached during a meeting between the two institutions at the Board Room of the Bank’s Head Office, on Thursday, February 22, 2024.
The meeting was convened at the instance of the Honourable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, in fulfillment of his commitment to “being a Way Maker, a Facilitator, and a Catalyst for the transformation of the FMBN into a modern, impactful and resilient housing finance institution that delivers on the maxim, “Everyone Deserves a Home.”
Presenting the various product offerings of Shelter Afrique, the Chief Executive Officer, Mr. Thierno-Habib Hann, outlined four categories that could benefit the FMBN in the delivery of its mandate, namely, the Financial Institutions Group, the Project Finance Group, the Sovereign and Public Private Partnership Group and the Fund Management Group.
He acknowledged the key role played by Nigeria in reducing the 52 million housing deficit facing the African continent, noting that Nigeria is the second largest shareholder of the Bank, with 15.2% shares, slightly lower than Kenya which leads with 16%.
Mr. Hann appreciated the contributions of the Honourable Minister to the transformation of Shelter Afrique to the status of a Development Bank and for facilitating the various collaborative efforts, including the one with the FMBN, an indication of his deep commitment to the transformation of the housing sector in Nigeria and Africa.
On his part, the Managing Director/Chief Executive of FMBN appreciated the Shelter Afrique Team for the visit, noting that the housing sector in Africa has the right people in place.
He stated the FMBN’s readiness to take advantage of the partnership in the areas of construction finance and infrastructure finance to complete some abandoned projects in States, and also for the Diaspora Mortgage Scheme.
“We have a large pool of contributors to the National Housing Fund (NHF) so, we can quickly profile and specifically discuss projects. While they can access funding from Shelter Afrique, we can provide the guarantees,” he noted.
Mr. Osidi further explained that the partnership will enhance the implementation of the recently launched Renewed Hope Cities and Estates Programme. “Under the Renewed Hope Cities and Estates Programme of the Federal Government, FMBN is providing the off-take guarantee for the development of 100,000 housing units across the country. We will be happy to engage with you on how to scale up those kinds of opportunities through your construction finance.”
Additionally, the Executive Director, Finance and Corporate Services, Mr. Ibidapo Odojukan, noted that other products the two institutions could collaborate on included the Student Housing Scheme, Project Preparation Fund and Mortgage Refinancing products of Shelter Afrique.
The Group Head, Project Finance, Dr. Kabir A. Yagboyaju also noted some low- hanging fruits among the products that the FMBN could take advantage of, to include the Green facility, projects targeting gender (women) and the development of an instrument for project financing.
To fast-track the partnership initiatives, the meeting resolved to set up a Technical Committee to draw up the next steps for the collaboration, with a commitment to commence deliberations immediately.
The meeting was attended by the Chairperson of the Board of Shelter Afrique, Dr. Chi Akporji, the Chief Executive of Shelter Afrique, Mr. Hann, a Director of the Board of Shelter Afrique, Eucharia Alozie, Regional Representative, Anglophone West Africa, Elizabeth Ogonegbu, as well as the representative of the Honourable Minister, Dr. Akinola Olakunle, other representatives from the Ministry of Housing and Urban Development and the top Management staff of the FMBN.
