Scheme offers up to N100m mortgage at 9% interest as government seeks to channel diaspora resources into housing
The Federal Mortgage Bank of Nigeria (FMBN) has launched its National Housing Fund (NHF) Diaspora Mortgage Loan in London, United Kingdom, opening a new financing channel for Nigerians living abroad to acquire homes and invest in the country's housing sector.
The initiative is designed to remove some of the longstanding barriers faced by Nigerians in the diaspora who want to own property in Nigeria, while providing an institutional and more secure avenue for them to participate in the country's housing market.
Under the new product, eligible Nigerians living abroad will be able to register under the NHF scheme, complete their Know Your Customer (KYC) requirements digitally, make contributions remotely and apply for mortgage financing without having to travel to Nigeria.
The initiative also forms part of wider government efforts to deepen mortgage penetration, mobilise long-term capital for housing development and leverage the economic resources of Nigerians living outside the country.
Government seeks to restore confidence in diaspora property investment
Speaking at the unveiling ceremony in London, the Minister of Housing and Urban Development, Muttaqha Rabe Darma, said the initiative would provide Nigerians abroad with a secure and institutional pathway to homeownership and investment in Nigeria's housing sector.
The minister, who was represented at the event by the Minister of State for Housing and Urban Development, Yusuf Ata, described the product as an important development in strengthening the relationship between Nigeria and its citizens abroad.
According to him, the scheme would create new opportunities for diaspora participation in Nigeria's built environment while addressing some of the concerns that have discouraged Nigerians abroad from investing in property at home.
He noted that many Nigerians living abroad had long desired to own homes in Nigeria but had encountered problems ranging from fraudulent property transactions and abandoned projects to unreliable intermediaries and inadequate financing arrangements.
“The NHF Diaspora Mortgage Loan represents the Government’s commitment to restoring confidence through credible institutions, transparent processes, and secure financing. Nigerians in the diaspora shoul take advantage of the new mortgage window to register, contribute, participate and invest to own your home.”
The minister's remarks underscore the government's intention to make the diaspora a more active participant in Nigeria's housing and real estate ecosystem while reducing the risks associated with property transactions conducted remotely.
FMBN offers up to N100m at 9%
The Managing Director and Chief Executive of FMBN, Shehu Usman Osidi, said the launch represented more than the introduction of another mortgage product, describing it as a new phase in the country's housing finance system.
According to Osidi, the initiative would extend access to affordable homeownership beyond Nigeria's borders and strengthen the relationship between the country and its citizens around the world.
“Today, we are not merely unveiling another mortgage product, but also opening a new chapter in Nigeria’s housing finance landscape, a chapter that extends the opportunity of affordable homeownership beyond our borders and strengthens the enduring bond between Nigeria and her citizens across the world.”
He explained that the Diaspora Mortgage Initiative was consistent with FMBN's existing mandate and represented an expansion of the bank's efforts to deepen mortgage financing and mobilise additional long-term investment into the housing sector.
Under the scheme, eligible contributors can access up to N100 million in mortgage financing, subject to affordability and other applicable requirements.
The loan carries an interest rate of nine per cent per annum and a maximum repayment period of 10 years.
The digital nature of the process is expected to make the scheme more convenient for Nigerians living in countries such as the United Kingdom and other parts of Europe, North America, Africa and beyond.
Scheme targets jobs, construction and foreign exchange inflows
Beyond individual homeownership, FMBN expects the initiative to generate wider economic benefits.
Osidi said increased access to mortgage finance for Nigerians abroad could stimulate residential construction, support property developers and create employment across the housing value chain.
The initiative could also deepen mortgage penetration in Nigeria and increase foreign exchange inflows as Nigerians abroad channel part of their earnings and savings into property investment at home.
“This is therefore not simply a Diaspora product. It is a national housing finance strategy under the Renewed Hope Housing Agenda of Mr. President and is designed to leverage the enormous potential of Nigerians abroad for the benefit of the entire country,” he added.
The FMBN chief executive also assured Nigerians in the diaspora that the institution would administer the product with emphasis on integrity, transparency, professionalism and accountability.
He said technology would be deployed to improve service delivery and make the mortgage process more efficient for applicants who are based outside Nigeria.
NiDCOM urges Nigerians abroad to seize opportunity
The Chairman and Chief Executive Officer of the Nigerians in Diaspora Commission (NiDCOM), Abike Dabiri-Erewa, welcomed the initiative, describing it as a platform built around investment, belonging and trust.
She said the product would give Nigerians abroad a structured channel through which they could invest in Nigeria's real estate sector while having greater confidence in the institutional process.
Dabiri-Erewa urged members of the diaspora community to take advantage of the mortgage opportunity and deepen their economic participation in Nigeria.
“FMBN has done its part. NiDCOM has done hers. Now, do yours. We look forward to your investment back home; we look forward to working with you; we look forward to continuous collaboration with you in overseas.”
Her remarks reflect the growing emphasis by Nigerian authorities on harnessing diaspora capital, expertise and networks as part of the country's economic development strategy.
CBN supports risk management framework
The Central Bank of Nigeria (CBN) also played a role in the development of the mortgage product.
The Director of the Development Finance Institutions Department of the CBN, Mairami Ali Baba, highlighted the collaboration between the apex bank and FMBN in developing the Diaspora Mortgage Loan.
He said the CBN worked with FMBN on the risk management framework for the product, an important component given that the scheme is designed for borrowers who reside outside Nigeria.
The framework is expected to support the safe and sustainable administration of the mortgage product while addressing some of the risks associated with cross-border lending and property financing.
Stakeholders pledge support
The Chairman of the Central Association of Nigerians in the UK (CANUK), Hon. Dr. Iliyasu Maisanda, commended the Federal Government for introducing the initiative and pledged the association's support for its implementation.
The launch brought together senior government officials, housing and mortgage finance stakeholders, Nigerian diplomatic representatives and members of the Nigerian diaspora.
Those present included Nigeria's High Commissioner to the United Kingdom, Ambassador Amin Dalhatu; the Permanent Secretary of the Ministry of Housing and Urban Development, Dr. Shuaib Muhammad Belgore; and FMBN Board Member, Momoh Jubril.
Also in attendance were FMBN's Executive Director of Finance and Corporate Services, Ibidapo Odojukan, and Executive Director of Loans and Mortgage Services, Dr. Muhammad Sani Abdu.
The event further attracted the President of the Mortgage Banking Association of Nigeria (MBAN), Ayo Olowookere, as well as other senior officials and representatives of the housing, mortgage finance and Nigerian diaspora communities.
A new channel for diaspora participation
The launch of the Diaspora Mortgage Loan comes as Nigeria seeks to address its longstanding housing deficit while expanding access to formal mortgage finance.
For Nigerians abroad, the product could provide a more structured alternative to informal property purchases and direct investment arrangements that have sometimes exposed prospective homeowners to fraud, disputes and unfinished developments.
For FMBN and the Federal Government, the broader objective is to transform diaspora interest in Nigerian property into a more organised source of housing finance and economic investment.
If successfully implemented, the initiative could strengthen links between Nigeria's diaspora and domestic housing developers, mortgage institutions and financial regulators, while supporting the government's wider housing and economic development agenda.
The success of the scheme, however, will ultimately depend on the ease of accessing the facility, transparency in property transactions, the quality of participating developers, effective customer protection and the ability of FMBN and its partners to maintain confidence among Nigerians living abroad.