FMBN Proposes Tax on Unoccupied Houses to Tackle Nigeria’s Housing Deficit

The Nigeria’s housing crisis, the Federal Mortgage Bank of Nigeria (FMBN) has urged the federal government to impose taxes on unoccupied houses, particularly in Abuja. The proposal aims to incentivize property owners to rent out or convert these vacant structures into affordable housing options.

Shehu Osidi, CEO of FMBN, made the call while speaking to journalists in Abuja on Wednesday, marking his first anniversary at the helm of the bank’s management. According to Osidi, a significant number of luxury homes remain unoccupied, while millions of Nigerians struggle with housing shortages.

Illustrating the disparity, Osidi pointed out that a N20 billion investment in high-end housing barely delivers 20 luxury homes, while the same amount could fund the construction of 200 affordable houses.

“That is why the bank decided to take up financing housing construction,” he explained. “We want to control the prices at which these houses are delivered, ensuring they remain within reach for low and middle-income earners.”

He further stressed that the houses sitting empty are not the ones Nigeria desperately needs. Instead, the focus should be on developing homes that the average citizen can afford.

Osidi revealed that the highest amount a buyer can access through an FMBN-financed home is N50 million, reinforcing the bank’s commitment to affordability.

“We are encouraging Nigerians and investors to channel funds into affordable housing projects,” he stated. “Even if you contribute to the National Housing Fund (NHF), the maximum loan you can get is N50 million. This clearly defines the target market we are created to serve.”

To support its affordable housing agenda, FMBN has committed an N100 billion off-takers guarantee for the Renewed Hope Housing projects nationwide. The bank is also directly financing key developments, including an N19.9 billion project in Karsana, Abuja, and an N27 billion initiative in Ibeju Lekki, Lagos.

In addition to financing projects, Osidi announced that FMBN plans to introduce new initiatives to enhance homeownership. These include rent assistance, non-interest mortgages, and NHF diaspora mortgage loans to attract foreign investment.

He emphasized the bank’s ongoing efforts to ensure the timely completion of projects and the smooth allocation of homes to beneficiaries. Where necessary, the bank will consider outright sales of some estates to recover its investments.

Currently, FMBN is working closely with several states, including Nasarawa, Gombe, Niger, Abia, Osun, Enugu, and Cross River, to finalize estate projects and allocate homes to civil servants.