FMBN wants unoccupied houses taxed to tackle housing deficit

The Federal Mortgage Bank of Nigeria (FMBN) has asked the federal government to impose taxes on unoccupied houses to address the country’s housing deficit.

Shehu Osidi, the bank’s chief executive officer (CEO), spoke to journalists on Wednesday in Abuja while marking his first anniversary as the management lead.

Osidi proposed taxing unoccupied houses in Abuja to address housing shortages, encouraging owners to rent them out or convert them into affordable housing.

“Imagine a situation where N20 billion is invested in a project. We have developments in Abuja where you will be told that a house costs as much as N1 billion Naira,” the CEO said.

Osidi added that if the N20 billion is invested in affordable housing, it could construct 200 homes, however, the same amount would only deliver 20 luxury houses.

He said FMBN has funded housing construction to address Nigeria’s shortage of affordable homes, adding that the country has many unoccupied houses that remain unaffordable while affordable alternatives are lacking.

“That is why the bank decided to take up financing housing construction; so that we can then control the prices at which these houses are delivered within the threshold of affordability for the target market; the low and medium income earners,” he said.

“So I will say to you that the houses that are available but empty, are not the houses that we need.”

‘HIGHEST AMOUNT OF HOUSE AT FMBN N50M’

The CEO said the highest amount for a house financed by the bank is N50 million.

“And that is why we are encouraging Nigerians, and investors, to invest in houses that are affordable, that Nigerians can afford,” he said.

“Even if you are a contributor to the National Housing Fund (NHF), the highest amount of money you can get to purchase a house is N50 million.

“That says a lot in terms of the kind of target market that this bank is created to serve.”

To support the housing initiative, he said the bank has provided an N100 billion off-takers guarantee for the Renewed Hope Housing projects nationwide.

“Additionally, FMBN is directly funding the project with N19.9 billion for the Karsana site in Abuja and a N27 billion facility for the Renewed Hope Housing Project in Ibeju Lekki, Lagos,” Osidi added.

Osidi also said FMBN had issued additional bankable off-takers guarantees to developers to secure funding.

He announced that FMBN plans to introduce new products, including rent assistance, non-interest mortgages, and NHF diaspora mortgage loans, to support homeownership and attract foreign exchange.

The CEO said the bank is working to complete ongoing projects and ensure beneficiaries take possession without delays.

“Where necessary, we will pursue outright sale of some of the estates in order to recover the bank’s investments,” he said.

“In this regard, we are currently collaborating with Nasarawa, Gombe, Niger, Abia, Osun, Enugu and Cross River States to ensure takeover/completion of estates for allocation to civil servants.”

Osidi added that the bank had achieved financial stability and operational efficiency and is now positioned for greater success in 2025.