FMBN unveils mortgage for informal sector, diaspora Nigerians

The Federal Mortgage Bank of Nigeria (FMBN) has launched a series of innovative mortgage products designed to expand access to housing finance for diverse population groups, including self-employed individuals, daily earners, and Nigerians in the diaspora.

According to a document obtained in Abuja, the bank introduced several tailored offerings, such as the Rent Assistance Loan and the Home Improvement Loan, specifically created to cater to individuals in the informal sector, many of whom lack traditional income documentation required by conventional mortgage systems.

Additionally, FMBN is rolling out a Non-Interest NHF Mortgage Loan, aimed at Nigerians who prefer Sharia-compliant or alternative financial models. The initiative underscores the bank’s commitment to flexibility and responsiveness to the evolving needs of its customers.

A significant development is the upcoming launch of the Diaspora Mortgage Product, being developed in partnership with the Nigerians in Diaspora Commission (NiDCOM). This product will enable Nigerians living abroad to contribute to the National Housing Fund (NHF) Scheme and access mortgage financing to own homes in Nigeria.

FMBN’s ongoing reforms and product diversification efforts are already producing measurable outcomes. Between May 2023 and early 2025, the bank disbursed over ₦11.75 billion in NHF mortgage loans to 1,285 beneficiaries.

The bank has also intensified its Rent-to-Own Programme, releasing ₦15.06 billion to 1,140 Nigerians, while its Home Renovation Loan initiative has provided ₦15.35 billion in financing to over 27,900 homeowners to support critical home upgrades.

In addition to direct loans, FMBN has invested heavily in new housing developments, financing the construction of 2,542 housing units valued at ₦30.91 billion across Nigeria’s six geopolitical zones. These projects are focused on low- and middle-income earners, promoting inclusive urban growth and creating thousands of jobs in construction and related industries.

The bank stated that the upcoming Diaspora Mortgage Product is expected to attract substantial foreign inflows into the housing sector, capitalizing on the estimated $20 billion in annual remittances from Nigerians abroad. This will further strengthen FMBN’s position as a key player in diaspora engagement and national housing development.

According to FMBN, these initiatives are part of a broader strategy to narrow Nigeria’s housing deficit and provide sustainable homeownership solutions for a wider segment of the population.

“Our goal is to deepen access to housing finance across all strata of society. With these new mortgage offerings and strategic partnerships, FMBN is well-positioned to make a lasting impact in addressing Nigeria’s housing needs,” the bank affirmed.