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By Maduka Nweke
The Federal Government’s plan to recapitalise the Federal Mortgage Bank of Nigeria (FMBN) has sparked mixed reactions among Nigerians, with developers, industry players and ordinary citizens questioning whether the move truly addresses the housing needs of the people or merely serves as another political gesture.
For many, the problem is not in the idea of strengthening the FMBN but in how successive governments have failed to provide functional mortgage facilities that make housing genuinely affordable.
A property developer who spoke to Daily Sun argued that the renewed focus on recapitalisation is driven more by political loyalty than by concern for the common man. “The National Assembly says it supports the Federal Mortgage Bank of Nigeria’s recapitalisation efforts, which aim to enhance the bank’s capacity to deliver affordable housing and reduce the nation’s housing deficit. But in the real sense, it is because their principal has said so,” the source insisted.
Dr. Chibuzor Okeke, a Lagos-based developer, was even more scathing. He accused legislators of prioritising personal interests over meaningful reform. “Legislators are after their pockets and they consider their interests first before seeing the public. Why will they not make a strong legislation that can stand the test of time? They will always approve borrowing from abroad for projects that we don’t know about. All this borrowing paints the country in the picture of those lacking mineral resources. Meanwhile, we have a lot of resources that can take good care of our financial problems and employ the population at all levels. I don’t know whether this could be termed wickedness, otherwise, I don’t know why they cannot fix loan facilities to help low-income earners,” he said.
Mrs. Monica Osaghae, Managing Director of Efe Enterprises Limited, echoed similar concerns. She wondered why functional mortgage systems of the past were abandoned, leaving Nigerians with limited options. “Is there anything governments were doing in those days when the mortgage facilities were working that has now stopped? I think because government likes cheap money and the legislators are always ready to approve whatever amount the government wants without questions, it gives them the privilege to depend on borrowing instead of harnessing the natural resources endowed in the country for the benefit of all,” she said.
Despite these criticisms, the National Assembly insists that its backing of the recapitalisation is grounded in the quest for affordable housing. At a recent housing sector retreat in Lagos, themed “Actualising the Renewed Hope Agenda for Housing and Urban Development: Examining Strategies, Identifying Opportunities to Boost Scale and Impact,” Senate Committee Chairman on Lands, Housing and Urban Development, Aminu Tambuwal, pledged legislative support for the FMBN.
“The Senate will ensure adequate funding and back FMBN’s recapitalisation drive towards affordable mass housing delivery for Nigerians,” Tambuwal said.
He stressed that housing and urban development are critical to national economic growth and social stability, noting that scale and impact can only be achieved through innovative strategies, private sector participation, and strengthened institutions.
He reaffirmed the legislature’s commitment to aligning with President Bola Tinubu’s Renewed Hope Agenda, adding that ongoing efforts include reinstating the Federal Housing Authority (FHA) into the federal budget. “This will enable it to replicate past successes such as FESTAC Town and Gwarimpa Estate. In addition, I urge all participants at this retreat to identify legislative amendments that may be necessary to strengthen the housing sector. The committee will expedite action on the necessary amendments to ensure their swift passage into law,” he assured.
From the House of Representatives, Chairman of the Committee on Regional Planning and Urban Development, Mr. Abiante Awaji, highlighted the need for deeper research to replace costly imported materials with local alternatives. “A lot has to be done in terms of research to provide local alternatives to foreign building materials to make housing affordable and available,” he said.
Minister of Housing and Urban Development, Ahmed Dangiwa, meanwhile, praised the National Assembly for its intervention in raising the ministry’s budget. “When the Budget Office presented their budget, the ministry initially received a significant reduction from the amount provided in 2024. We engaged with the National Assembly Committees, and they intervened to increase our budget by an additional N50 billion,” he revealed.
According to Dangiwa, the intervention created jobs and empowered both businesses and individuals across the housing value chain. He also disclosed that the ministry has requested an additional N360 billion to expand the Renewed Hope Estates to 18 more states, extend the urban renewal programme to over 100 more sites, and address outstanding liabilities.
Still, scepticism persists. For developers like Okeke and Osaghae, promises of recapitalisation without systemic reform ring hollow. They argue that unless Nigeria fixes its mortgage system to serve low- and middle-income earners, the country’s housing deficit, estimated at over 28 million, will remain insurmountable.
As one respondent bluntly put it: “The government talks about affordable housing, but until loan facilities are structured to support the average Nigerian, it will remain just another slogan under the Renewed Hope Agenda.”
