According to Abraham Maslow, a renowned American psychologist renowned for his theory of human motivation and the concept of the hierarchy of needs, shelter is one of the basic physiological needs of humans under the hierarchy of needs theory. Unfortunately, despite the importance of shelter (housing) in Maslow’s hierarchy of needs, a staggering global housing deficit affects billions of people worldwide.
Data by the United Nations Habitat and the World Economic Forum indicate that nearly three billion people lack adequate housing, which is more than a third of the planet’s population, as 2.8 billion people are living in inadequate conditions, with over 1.1 billion packed into informal settlements or slums, and at least 300 million having no permanent shelter at all.
The data added that 100 million people globally don’t have a home, and a quarter live in conditions harmful to their health, safety, and prosperity. The figure (2.8 billion people who lack adequate housing) is projected to grow, with about three billion people potentially needing adequate homes by 2030. This need requires building 96,000 affordable homes daily to accommodate the escalating demand, which is driven by factors like rapid urbanisation and climate-induced displacement.
In Nigeria, with a housing deficit of over 28 million, experts and operators in the real estate industry have continued to harp on the need to drive a mortgage financing scheme that will not only provide affordable housing to Nigerians but also ensure its sustainability, and this is where the Federal Mortgage Bank of Nigeria (FMBN) comes in. The FMBN is saddled with the responsibility of providing affordable mortgage financing to the people.
The FMBN has indeed undertaken some initiatives to tackle the housing deficit and improve access to mortgages for low and middle-income earners. Today, the mortgage bank is seen as one institution with the capacity and design to provide the kind of housing solutions that Nigerians need. The bank is the only institution in Nigeria that offers housing loans and mortgages at single-digit interest rates, mostly at 6-7 per cent, while also offering a repayment tenor of up to 30 years.
As the institution mandated to oversee the National Housing Fund (NHF) scheme, a contributory scheme was set up to provide a pool of funds through monthly contributions from Nigerian workers. This includes economically active Nigerians from both the public and private, formal and informal sectors.
Recently, the management of FMBN, led by its Executive Director, Loans and Mortgage Services, Dr. Mohammed Abdul, paid a courtesy call on the Governor, Rt. Hon. Sheriff Oborevwori at Government House, Asaba, where he (Oborevwori) presented a Certificate of Occupancy (C of O) to the Bank for the construction of a workers’ housing estate in Ibusa, Oshimili North Local Government Area of the state.
Speaking at the ceremony, Governor Oborevwori said the gesture was part of his administration’s commitment to partner with the Federal Government in providing housing for workers in the state and in line with his resolve to improve their welfare.
The Governor disclosed that the land, measuring about 10.1 hectares and situated at Core Area 2, Ibusa, was allocated for the development of a housing scheme under the collaboration of the FMBN, Nigeria Labour Congress (NLC), and Trade Union Congress (TUC).
He explained that, although the C of O was ready since January 2024, the presentation was delayed by administrative processes, adding that he waived statutory fees amounting to about N200 million to ease the acquisition process in the interest of workers.
“Most of the salaries of our junior and middle-level workers are consumed by rent. That is why this housing scheme is so important. I appeal to the Federal Mortgage Bank to ensure the project is delivered on time and made accessible to those for whom it is intended,” the governor said.
While commending President Bola Tinubu for encouraging federal agencies like FMBN to collaborate with subnational governments, Oborevwori pledged continued support for the project.
Earlier in his remarks, Dr. Abdul commended the governor for his strides in infrastructural development across the state, particularly in Asaba and its environs. He called on local governments in Delta State to contribute to the National Housing Fund to enable the bank to extend housing projects to grassroots areas.
Dr. Abdul explained that the FMBN, established over 32 years ago, is committed to addressing the country’s housing deficit, estimated at between 20 and 22 million units, through mortgage creation and construction loans. According to him, the bank currently has about nine ongoing housing projects in Lagos, Abuja, Kano, and other parts of the country, adding that the FMBN is determined to replicate the initiative in Delta State.
“With the Renewed Hope Mega Mini-City project of Mr. President, our target is to provide affordable housing for Nigerians at all levels, especially those at the bottom of the pyramid. Delta is very key to the stability and success of this national plan, and we want to make a lasting impact here,” Abdul added.
