FMBN Secures ₦100 Billion Offtaker Guarantee for Abuja’s Karsana Renewed Hope City Project

The Federal Mortgage Bank of Nigeria (FMBN) has secured a ₦100 billion Offtaker Guarantee to support the development of the Karsana Renewed Hope City in Abuja.

The Renewed Hope Cities, located in the Federal Capital Territory (FCT), Lagos, and Kano, are part of a Public-Private Partnership (PPP) initiative under the Renewed Hope Cities and Estates Programme, designed to address Nigeria’s housing deficit.

This announcement was made by the Minister of Housing and Urban Development, Musa Dangiwa, during a presentation at the State House Gallery, Aso Villa, on Sunday.

Dangiwa revealed that the guarantee has already allowed developers to mobilize over ₦40 billion in financing, marking a significant milestone in addressing Nigeria’s housing challenges.

“The Ministry has facilitated a ₦100 billion Bankable Offtaker Guarantee by the Federal Mortgage Bank of Nigeria (FMBN) for the Karsana Renewed Hope City. This has enabled developers to mobilize over ₦40 billion in financing—a first in the history of Nigeria’s housing sector,” the Housing Minister stated.

He added, “The ₦100 billion Bankable Offtaker Guarantee is the most significant intervention the Bank has provided for the Renewed Hope Cities project.”

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Dangiwa emphasized the importance of the Offtaker Guarantee in addressing challenges faced by developers, such as high land costs and double-digit interest rates on construction financing. He noted that the guarantee helps mitigate financial risks, ensures timely delivery of housing projects, and makes homes more affordable for low- and middle-income earners.

Additional Insights

Beyond the Renewed Hope Cities project, Dangiwa highlighted other initiatives by the Federal Mortgage Bank of Nigeria (FMBN) to enhance housing delivery across the nation.

He disclosed that between May 2023 and now, FMBN has disbursed ₦59.3 billion in housing loans, constructed 2,465 housing units nationwide, and created 61,625 well-paying construction jobs.

The bank has also provided single-digit long-term loans, home renovation loans, and rent-to-own options for 17,980 contributors to the National Housing Fund Scheme.

Other interventions include Cooperative Housing Development Loans and Individual Construction Loans at concessionary rates to enhance affordability. Additionally, FMBN introduced an innovative Rent Assistance product that allows

qualified Nigerians to spread rent payments over 12 months with affordable monthly installments.

Key Details

The Renewed Hope Estates and Cities Programme was launched in February 2024 with the groundbreaking of the 3,112-unit Renewed Hope City project in Karsana District, Phase 3, Federal Capital Territory, Abuja.

The programme aims to address Nigeria’s housing deficit by delivering 100,000 housing units nationwide through a PPP model. Developers are responsible for land acquisition and securing construction financing, while the government provides an enabling environment for project success.

Renewed Hope Cities in Abuja, Lagos, and Kano are set to deliver high-quality, affordable housing under a framework that balances commercial viability and social impact.

While some units will be sold at market rates, many will be offered at concessionary rates to low- and middle-income Nigerians, including members of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).