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Mortgage Banking Institutes - FMBN

Federal Mortgage Bank of Nigeria

The Federal Mortgage Bank of Nigeria (FMBN) was established in 1956, known then as the

Nigerian Building Society (NBS), a joint venture of the Commonwealth Development

Corporation and the Federal and Eastern Governments of Nigeria. 

Following the introduction of the Indigenisation Policy, the Federal Government, by

Indigenisation Act 1973, undertook 100 percent ownership acquisition of the NBS and

consequently renamedit the Federal Mortgage Bank of Nigeria (FMBN).

The Bank operates as an effective vehicle for increasing the mobilisation of long-term funds,

lending volume and expansion of mortgage lending services to all segments of the Nigerian


The FMBN started the management and administration of the contributory savings scheme

known as the National Housing Fund (NHF) established by Act 3 of 1992. The NHF is a

pool that mobilizes long-term funds from Nigerian workers, banks, insurance companies

and the Federal Government to advance loans at soft interest rates to its contributors.

In 1994, the Federal Mortgage Bank of Nigeria, with the promulgation of the FMBN Act 82

[1993] and the Mortgage Institutions Act 53 [1989] was accorded the status of the apex

mortgage institution and thus ceded its retail function to an autonomous company, Federal

Mortgage Finance Limited (FMFL) which was carved out of the FMBN, itself fully owned by the

Federal Government of Nigeria.

Under the reform of the housing sector based on the FGs 2002/2006 National Policy on

Housing and Urban Development, the FMBN was restructured into a Federal

Government-Sponsored Enterprise (FGSE) with more focus on secondary mortgage and capital

market f unctions. It plays the critical role of developing a robust mortgage finance system

for the country. To meet its mandate, the FMBN has shifted operational emphasis to

expand its functions from only social housing on-lending under the NHF to include commercial

on lending for housing, commercial mortgages refinancing, mortgage purchasing and

warehousing and Mortgage-Backed Securitisation.

Under this mandate it finances mortgages created by primary mortgage institutions (PMI) under

the National Housing Fund Scheme and also gives estate development loans (EDL) to real

estate developers.

The banks overall mandate is to promote the delivery of affordable and modern houses to