FEDERAL MORTGAGE BANK OF NIGERIA ACT

Act · Land & Housing

An Act establishes the Federal Mortgage Bank of Nigeria as the primary institution for housing finance, including managing the National Housing Fund. It targets Nigerians pursuing home ownership and primary mortgage institutions. This facilitates affordable mortgages and mobilizes funds for housing.

FEDERAL MORTGAGE BANK OF NIGERIA ACT

What Is This Policy?

An Act establishing the Federal Mortgage Bank of Nigeria (FMBN) as the apex institution for housing finance in Nigeria, including the management of the National Housing Fund.

Who Does It Target?

Nigerians seeking affordable home ownership through the NHF mortgage Primary Mortgage Institutions (PMIs) accessing FMBN refinancing The National Housing Fund contributors Federal Ministry of Works and Housing

What Does It Aim to Achieve?

Facilitate home ownership for Nigerians through subsidised mortgage lending, mobilise long-term funds through the National Housing Fund, and provide liquidity to primary mortgage institutions.

Key Features

NHF Management: FMBN manages the National Housing Fund through which workers contribute 2.5% of monthly salary for affordable mortgages. Mortgage Lending: Provides NHF-backed mortgages to qualified contributors at subsidised interest rates. PMI Refinancing: Refinances primary mortgage institutions enabling them to lend more to home buyers. Estate Development: Finances the development of housing estates through approved developers.

Current Status

Rollout Stage: Active Coverage: Nationwide Beneficiaries: NHF contributors; home buyers; housing sector Funding: NHF contributions; government capitalisation

How to Access

Must be an NHF contributor for at least 6 months before applying for an NHF mortgage Obtain NHF statement from your employer and PenCom Apply through a licensed PMI for an NHF mortgage Application method: Apply through any Federal Mortgage Bank of Nigeria accredited PMI or directly at FMBN offices.

Important Terms

NHF contribution is mandatory for employees in public and private sectors NHF mortgage is capped at a maximum loan amount and repayable over up to 30 years Properties purchased with NHF mortgages cannot be sold within 5 years of purchase

Official Resources

Website: https://www.fmbn.gov.ng Contact: Federal Mortgage Bank of Nigeria (FMBN)

Legal Framework

Enacted under the legislative powers of the National Assembly as the Federal Mortgage Bank of Nigeria Act (Cap F19 LFN 2004). Operates alongside the National Housing Fund Act, the Land Use Act 1978, the Mortgage Institutions Act, and the National Housing Policy. Aligns with the UN-Habitat Sustainable Development Goal 11 on affordable housing and the African Union Agenda 2063 target on adequate shelter for all Africans.

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