Shehu Osidi: Mortgage Banking Professional to Lead New FMBN
The definitive, strategic, and well-crafted unveiling of housing and urban development reform initiatives by the federal government over the past couple of months shows that President Bola Ahmed Tinubu’s pledge to revitalise the housing sector and make homes accessible to all Nigerians is a promise that he intends to keep. From the President’s demerger of the Federal Ministry of Housing and Urban Development to his appointment of Ahmed Musa Dangiwa, a built environment professional, consummate housing finance professional, and former Managing Director of the Federal Mortgage Bank of Nigeria, to the holistic reforms that he has set out to implement in line with the Renewed Hope Agenda, there is a rising sense of optimism within stakeholder quarters that the nation is on the right course towards housing development.
On the heels of the inauguration of the four housing sector reform task teams in January and the recent launch of the Renewed Hope Cities and Estates Programme, which aims to build 50,000 homes in the first phase across the country, the President appointed Mr. Shehu Usman Osidi, an accomplished banker, experienced mortgage finance professional with more than 30 years’ experience in the housing and finance space, as Managing Director/Chief Executive on Thursday, 14th February 2024.
Housing industry experts have hailed the decision of Mr. President to appoint Osidi to the top leadership of the nation’s apex mortgage bank as wise, fitting, and historic, as it will enable seamless implementation of the Renewed Hope housing reforms being championed by the Hon. Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa.
Born on 10th May 1965 in Shafa-Abakpa, Toto Local Government Area of Nasarawa state, Shehu Osidi was, prior to his appointment, the Special Assistant on Housing and Chief of Staff to Dangiwa, with whom he also worked as a Special Assistant while the latter was Managing Director of the FMBN between 2017 and 2022.
Between 1990 and 2010, Osidi worked with four commercial banks in Nigeria, starting with Lion Bank of Nigeria Plc from 1990 to 2005. He then moved on to Diamond Bank in 2005 for a one-year stint before answering the call to join Intercontinental Bank from 2006 to 2007, and Afribank Nigeria Plc from 2007 until 2010. His stellar performance at Afribank in those three years proved transformative, as he was able to turn around the fortunes of the branch within the threemonth deadline, from a loss of N7 million in the first month to a profit of N6 million in his third month. He was able to maintain the performance progressively, growing the branch’s monthly profit to N18 million before his departure.
It was in 2010 that Osidi joined FMBN as an Assistant General Manager, becoming a pivotal staff of the bank.
Loan product designed to bring members of the informal sector under the umbrella of the National Housing Fund (NHF) scheme. Using the scheme alone, the bank disbursed a total sum of N22.082 billion, delivering 3,540 housing units to cooperative societies across the country.
Other innovative products that he led efforts to design include the Rent-to-Own Scheme, FMBN Home Renovation Loan, and the Diaspora NHF Mortgage Loan product. The Home Renovation Loan was introduced to widen the beneficiary net of the NHF scheme, affording contributors with limited affordability the chance to enjoy low-hanging fruits, up to N1 million to upgrade, renovate, expand, or complete their homes. Within the period, the Bank under the visionary leadership of the current Housing Minister disbursed a total of N80.1 billion to 77,575 beneficiaries in Home Renovation Loans.
On the other hand, the Diaspora Mortgage Loan sought to address two key issues; providing more Nigerians with access to affordable homeownership and tapping into the housing finance opportunity that the $20 billion annual diaspora remittance offers. The Rent-to-Own product allowed beneficiaries to simply move into an FMBN-funded house and pay up the cost as monthly or annual rent, at single-digit interest rate. No equity contribution is required from such a subscriber. A total of N1.14 billion was disbursed to 76 beneficiaries in what were the early days of the scheme.
An expert in International Housing Finance matters, Osidi was a crucial part of the Arc. Ahmed Musa Dangiwa team that initiated and implemented transformational policies and actions, causing the bank to achieve its most historic milestones between 2017 and 2022 throughout its 30-year history. From his role in the development and implementation of a Six-Point Agenda for the new management which resumed in April 2017, to the passionate pursuit of automation across the bank’s processes, micro-management, and completion of nine out of 26 abandoned projects, aggressive debt recovery, and implementation of the Enterprise-wide Risk Management Framework to cut down the incidence of non-performing loans.
Osidi, as a key staff and confidante of the then Managing Director of FMBN, now Housing Minister, contributed to the historic milestones recorded.
Imhoagene is a Housing Analyst and Commentator based in Abuja.