The Federal Mortgage Bank of Nigeria (FMBN) has introduced a new Diaspora Mortgage Loan product, allowing Nigerians living abroad to access up to N100 million in mortgage financing at a single-digit interest rate of 9% per annum. The initiative, unveiled on Friday, is designed to channel diaspora remittances into homeownership, addressing the housing deficit in Nigeria.
Key Features of the Diaspora Mortgage Loan
According to FMBN, the loan is available to Nigerians in the diaspora who are contributors to the National Housing Fund (NHF) scheme. The maximum loan amount is N100 million, with a repayment period of up to 30 years. The interest rate is fixed at 9%, significantly lower than the average commercial mortgage rate in Nigeria, which often exceeds 20%.
Borrowers can repay the loan either in US dollars or naira, providing flexibility for those earning foreign currency. The loan can be used to purchase a new home, build on an existing plot, or renovate an existing property in Nigeria. FMBN stated that the loan is available for both completed and uncompleted properties, subject to verification.
Eligibility and Application Process
To qualify, applicants must be Nigerian citizens residing abroad, must have a valid means of identification (such as a Nigerian passport or diaspora ID), and must be registered with the NHF. They must also provide proof of income and a domiciliary account for repayment. The application process is online, with FMBN promising a turnaround time of 30 days for approval.
FMBN's Managing Director, Shehu Osidi, said, "This product is a game-changer for Nigerians in the diaspora. It not only simplifies the process of owning a home in Nigeria but also ensures that their remittances are invested in tangible assets. We have streamlined the process to be fully digital, so applicants can apply from anywhere in the world."
Impact on Housing and Economy
The move is expected to boost the housing sector and reduce the estimated 28 million housing deficit in Nigeria. Diaspora remittances to Nigeria reached $20 billion in 2025, according to World Bank data, and FMBN aims to tap into this flow. By offering a lower interest rate, the bank hopes to attract more diaspora investors, thereby increasing the stock of affordable housing.
Real estate experts have welcomed the initiative, noting that it could also stimulate the construction industry and create jobs. However, some have raised concerns about the feasibility of the 9% rate given the high cost of funds in Nigeria. FMBN, however, insists that its mandate as a primary mortgage lender allows it to offer such rates.
How to Apply
Interested applicants can visit the FMBN website or its diaspora portal to start the application. The bank has also partnered with Nigerian embassies and high commissions to provide information and support to applicants abroad. FMBN plans to roll out a series of webinars and town hall meetings in major diaspora hubs like the US, UK, and Canada to explain the product and answer questions.
The Diaspora Mortgage Loan is part of FMBN's broader strategy to increase homeownership among Nigerians, particularly those who have been unable to afford homes due to high interest rates. With this new product, the bank aims to process at least 5,000 loans in the first year, potentially unlocking N500 billion in housing investments.
