The Federal Mortgage Bank of Nigeria (FMBN) and the Nigeria Social Insurance Trust Fund (NSITF) have initiated discussions aimed at forging a strategic partnership to enhance affordable housing opportunities for Nigerian workers by leveraging their statutory contributions to both institutions.
The talks took place during a high-level meeting at the headquarters of the Federal Mortgage Bank in Abuja, where executives from both agencies highlighted the urgent need for stronger institutional collaboration to tackle Nigeria’s persistent housing deficit and improve the welfare of workers nationwide.
Shehu Usman Osidi, managing director and chief executive of FMBN, explained that the proposed partnership aligns with the Bank’s mandate to mobilise long-term funds for housing development and provide affordable mortgage financing to Nigerian workers through the National Housing Fund (NHF) Scheme.
Osidi noted that NSITF had historically been envisaged as one of the original shareholders of the Federal Mortgage Bank when it was established as Nigeria’s apex mortgage finance institution. This arrangement was intended to ensure that workers, whose contributions underpin the NHF Scheme, had a direct institutional stake in the country’s housing finance system.
However, Osidi explained that shifts in the institutional landscape, particularly following the enactment of the Employees’ Compensation Act of 2010, transformed NSITF into a specialised social insurance agency focused on workplace compensation, occupational safety, and employee welfare. As a result, the earlier proposal for NSITF’s equity participation became less relevant, while FMBN has been consolidating its ownership under the Federal Government to recapitalise and reposition the Bank.
Despite these changes, Osidi emphasised that significant opportunities remain for collaborative housing initiatives targeting Nigerian workers, particularly through cooperative housing schemes and structured mortgage access programmes. He cited the Karsana housing project in Abuja as a successful example, where FMBN provided a N100 billion off-takers’ guarantee alongside direct financing to accelerate delivery.
Speaking for NSITF, the agency’s Executive Director of Finance and Investment highlighted that Nigerian workers already contribute to both the NHF and one per cent of their earnings to the Employees’ Compensation Scheme managed by NSITF. He said these contributions could be strategically harnessed to fund housing projects that directly benefit workers and help address the housing challenges many face post-retirement.
Both institutions concluded the meeting with a commitment to deepen engagement, with NSITF inviting FMBN management for a follow-up session to refine the partnership framework and expedite the implementation of housing initiatives for Nigerian workers.