FMBN and NSITF discuss strategic partnership to use workers’ contributions to expand affordable housing and mortgage access in Nigeria

The Federal Mortgage Bank of Nigeria (FMBN) and the Nigeria Social Insurance Trust Fund (NSITF) have initiated talks to establish a strategic partnership aimed at increasing affordable housing opportunities for Nigerian workers by leveraging their statutory contributions.

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The discussions took place at the FMBN headquarters in Abuja, where executives from both institutions highlighted the urgent need for stronger collaboration to address Nigeria’s persistent housing deficit and enhance worker welfare nationwide.

Shehu Usman Osidi, managing director and chief executive of FMBN, said the proposed partnership aligns with the Bank’s mandate to mobilise long-term funds for housing development and provide affordable mortgage financing under the National Housing Fund (NHF) Scheme.

Osidi noted that NSITF was initially intended as one of FMBN’s original shareholders, allowing workers whose contributions underpin the NHF Scheme to have a direct institutional stake in the mortgage system.

However, the Employees’ Compensation Act of 2010 transformed NSITF into a specialised agency focused on workplace compensation and employee welfare, making direct equity participation less relevant.

Despite these shifts, Osidi emphasised opportunities for joint initiatives, including cooperative housing schemes and structured mortgage programmes.

He cited the Karsana housing project in Abuja, where FMBN provided a N100 billion off-takers’ guarantee alongside direct financing to accelerate delivery, as a successful model.

Representing NSITF, the Executive Director of Finance and Investment highlighted that workers already contribute to both the NHF and one percent of their earnings to the Employees’ Compensation Scheme.

These contributions, he said, could be strategically deployed to fund housing projects benefiting workers during employment and post-retirement.

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Both institutions concluded the meeting by committing to further engagement, with NSITF inviting FMBN for a follow-up session to refine the partnership framework and expedite housing initiatives for Nigerian workers.