FMBN launches N100m diaspora mortgage at 9% interest
The Federal Mortgage Bank of Nigeria (FMBN) has launched a new mortgage scheme in London to enable Nigerians living abroad to purchase homes in Nigeria without travelling back to the country to access the facility.
The product, known as the National Housing Fund (NHF) Diaspora Mortgage Loan, was unveiled at an event attended by Federal Government officials, mortgage bankers and members of the Nigerian community in the United Kingdom.
According to a statement signed by FMBN’s Head of Corporate Communications, Joe Abuku, the initiative is designed to address some of the challenges Nigerians in the diaspora face when attempting to own property in Nigeria.
The Minister of State for Housing and Urban Development, Yusuf Ata, who represented the Minister, Muttaqha Rabe Darma, said many Nigerians abroad were interested in owning homes in the country but often faced risks including fraud, abandoned projects and unreliable intermediaries.
“A lot of Nigerians abroad want to own homes in Nigeria. But they run into fraud, abandoned projects and people they cannot trust,” Darma said.
He described the mortgage scheme as a government-backed avenue for Nigerians abroad to acquire property through a safer and more direct process.
“No middlemen. No stories,” he added, urging Nigerians in the diaspora to “register, contribute, invest and own your home.”
Applications can be completed online
The FMBN Managing Director, Shehu Usman Osidi, said eligible applicants would not need to travel to Nigeria to access the mortgage facility.
He explained that the registration, Know Your Customer (KYC) verification, contributions and loan application processes could all be completed online.
“Everything will be done online. Register under NHF, do your KYC, contribute from where you are and apply for the loan,” Osidi said.
Under the scheme, eligible NHF contributors can access loans of up to N100 million at an interest rate of nine per cent per annum.
Repayment can be spread over a period of up to 10 years, depending on the applicant’s repayment capacity.
Osidi said the initiative formed part of President Bola Tinubu’s Renewed Hope Housing Agenda and was aimed at expanding access to home ownership among Nigerians living outside the country.
“We are not just launching a product. We are extending home ownership beyond our borders,” he said.
He added that the scheme would also support property developers, create employment opportunities and attract more foreign exchange into Nigeria’s housing sector.
Osidi assured prospective applicants that FMBN would administer the scheme transparently while using technology to improve service delivery.
NiDCOM, CBN back initiative
The Chairman of the Nigerians in Diaspora Commission (NiDCOM), Abike Dabiri-Erewa, welcomed the initiative, describing it as an opportunity to strengthen investment, trust and the connection between Nigerians abroad and the country.
“This is about investment, belonging and trust. FMBN has done its part. NiDCOM has done ours. Now it is left for you in the diaspora to take it up,” she said.
The Director of Development Finance Institutions at the Central Bank of Nigeria (CBN), Mairami Ali Baba, said the apex bank collaborated with FMBN to establish risk-control measures designed to protect both borrowers and the mortgage institution.
The Chairman of the Central Association of Nigerians in the UK, Iliyasu Maisanda, also commended the Federal Government for introducing the scheme and pledged his association’s support.
Other officials and stakeholders at the launch included Nigeria’s High Commissioner to the UK, Amin Dalhatu; Permanent Secretary of the Ministry of Housing and Urban Development, Shuaib Belgore; and President of the Mortgage Banking Association of Nigeria, Ayo Olowookere.
