The International Union for Housing Finance, Germany, has advised the Federal Mortgage Bank of Nigeria to explore the development bank model to provide affordable housing for Nigerians.

Mark Weinrich, IUHF’s secretary general, said this at a visit to the FMBN’s managing director, Shehu Osidi, in Abuja on Wednesday.

Mr Weinrich emphasised that development banks are specialised institutions that provide medium and long-term credit lending facilities, prioritising public interest over profits.

He believed this model would fit well into the Nigerian system, leveraging existing institutions to provide housing solutions and address deficits.

The IUHF secretary-general proposed a two-institution system for Nigeria: the development bank for construction finance, which would fund developers with equity and long-term loans, and the housing savings bank, which would collect savings from Nigerians and provide cheap loans.

Mr Weinrich suggested that the Housing Savings Bank could unlock Nigerian people’s money, creating a closed funding circuit relying on savings.

“The IUHF and the European Housing Savings Bank would support FMBN with technical assistance to build a sustainable system,” he disclosed.

Mr Weinrich emphasised the importance of providing decent housing for Nigerians, ensuring dignity, security, and economic stability.

Mr Osidi welcomed the suggestion, stating that the model was achievable as it simultaneously addressed both supply and demand.

Mr Osidi highlighted the need for more government funding to address Nigeria’s housing deficit, emphasising the importance of recapitalising the bank to raise cheap funding for consortium finance.

Hannatu Fika, the former executive secretary of the Federal Civil Service Housing Loan Funds, commended Mr Osidi’s initiatives in transforming the bank, stressing that proper funding from the federal government was crucial for FMBN to provide affordable housing for Nigerians.

(NAN)