Federal Mortgage Bank, Insurance Trust Fund Target Affordable Housing For Workers

The Federal Mortgage Bank of Nigeria (FMBN) and the Nigeria Social Insurance Trust Fund (NSITF) have begun discussions on a strategic partnership to expand affordable housing opportunities for Nigerian workers by leveraging their statutory contributions to both institutions.

The initiative was disclosed during a meeting between the management teams of the two agencies at the headquarters of the Federal Mortgage Bank in Abuja, where both sides emphasised the need for stronger institutional collaboration to address Nigeria’s housing deficit and improve workers’ welfare.

Speaking during the visit, the managing director/chief executive of FMBN, Shehu Usman Osidi, said 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 historically, NSITF was among the institutions originally contemplated as shareholders in the Federal Mortgage Bank’s ownership structure when it was established as Nigeria’s apex mortgage finance institution.

According to him, the arrangement was designed to ensure that Nigerian workers, whose contributions power the National Housing Fund Scheme, had institutional representation in the housing finance system.

He explained, however, that changes in the institutional landscape, particularly following the enactment of the Employees’ Compensation Act of 2010, transformed NSITF into a specialised social insurance institution focused on workplace compensation, occupational safety and employee welfare protection.

The FMBN boss added that the earlier proposal for equity participation by institutions such as NSITF had been overtaken by developments, as the Bank is currently consolidating its ownership structure with the Federal Government as the sole shareholder as part of efforts to recapitalise and reposition the Bank.

Despite the shift, Osidi stressed that significant opportunities remain for both institutions to collaborate on housing initiatives targeted at Nigerian workers, particularly through cooperative housing schemes and structured mortgage access programmes.

He cited large-scale institutional collaborations such as the Karsana housing project in Abuja, where the Bank provided a N100 billion off-takers’ guarantee alongside direct financing, as examples of how partnerships can unlock large-scale affordable housing delivery.

Also speaking, the managing director of NSITF, represented by the Executive Director of Finance and Investment, said Nigerian workers already contribute to the National Housing Fund as well as one per cent of their earnings to the Employees’ Compensation Scheme managed by NSITF.

He noted that both contributions could be strategically harnessed to deliver housing projects that directly benefit workers, while also addressing the housing challenges many employees face after retirement.

Both institutions agreed to deepen engagements on the proposed collaboration, with NSITF inviting the management of the Federal Mortgage Bank to a follow-up meeting to further refine the partnership framework and accelerate implementation of the housing initiatives.