News Investigators/ The Managing Director and Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Osidi, has called on the Federal Government to impose taxes on unoccupied houses in Abuja, the nation’s capital.
Mr Osidi made this call while addressing journalists on Wednesday in Abuja during the first anniversary of the Shehu Osidi-led FMBN management team.
He explained that the proposed tax would help tackle housing shortages by encouraging property owners to rent out their vacant homes.
“I am using this opportunity to call on government to tax some of those houses that are built and left vacant, not occupied.”
According to him, imposing a tax on unutilised houses can encourage owners to either put them to use or convert them into affordable housing.
“Imagine a situation where N20 billion Naira 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.”
Mr Osidi stated that, based on that budget, N20 billion would only deliver 20 houses. However, if allocated towards affordable housing, the same amount could construct 200 homes.
“I had said that in this country, we have houses we do not need, and we need houses we do not have.
“There are quite a number of houses that are not occupied. Why are they are not occupied?
“This is because those houses are not affordable. The houses we need that Nigerians can afford, are not available,” he said.
Mr Osidi explained that upon identifying this challenge, FMBN, being primarily a mortgage institution meant to provide financing for individuals to acquire homes, decided to step in and fund the construction instead.
“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.
“So I will say to you that the houses that are available but empty, are not the houses that we need.
“And that is why we are encouraging Nigerians, and investors, to invest in houses that are affordable, that Nigerians can afford.”
According to him, FMBN is unique in the sense that it is only finances affordable housing.
“Even if you are a contributor to the National Housing Fund, 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.”
Mr Osidi, however, reiterated FMBN’s commitment to its mandate of facilitating affordable home ownership for Nigerians.
He added that under the current management, FMBN had played a key role in advancing the housing sector agenda within President Bola Tinubu’s Renewed Hope Housing Programme.
“To support this initiative, the bank has provided a 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.”
Mr Osidi further stated that the bank had issued additional bankable off-takers’ guarantees to participating developers, enabling them to secure funding to deliver homes under the scheme.
He expressed confidence that “by the time President Tinubu marks one year in office, 1,000 houses under the Renewed Hope Housing Project will be ready for Nigerians.
“Additionally, FMBN plans to launch new products aimed at promoting financial inclusion and expanding homeownership opportunities.”
He listed the products to be launched to include:Rent Assistance – a soft loan to enable contributors to NHF meet rent obligations pending when they were able to own their own homes.
Others included:Non-Interest Mortgage- to address the concerns of those who preferred ethical products.
He said the NHF Diaspora Mortgage Loan was another product launched to enable Nigerians in the Diaspora own houses back home and provide an opportunity for the inflow of foreign exchange into the country.
The managing director said that the bank was also working on the completion of all ongoing projects and ensuring effective offtake by beneficiaries.
He said that FMBN would implement deliberate programme to ensure completion of ongoing or stalled projects and ensure effective offtake by beneficiaries.
“Where necessary, we will pursue outright sale of some of the estates in order to recover the bank’s investments.
“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.”
Mr Osidi said that the bank had made significant progress in financial stability, operational efficiency, and supporting national housing priorities assuring that the bank was poised to achieving even greater success in 2025.
NAN