FMBN to build 962 Abuja homes after $65m loan recovery
Nigeria's Federal Mortgage Bank will resume construction of 962 Abuja homes after the anti-graft agency recovered a $65 million loan that was allegedly diverted, offering a rare test of the country's ability to recoup misallocated capital for public use.
Nigeria’s anti-corruption agency has handed over a 27.92-hectare estate in Abuja to the Federal Mortgage Bank of Nigeria (FMBN) following a court-ordered asset forfeiture. The transfer, executed on Tuesday, paves the way for the completion of 962 housing units that were abandoned over a decade ago.
The project was initiated in 2012 and financed with a $65 million loan facility. According to the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the entire loan was diverted, with part of the funds routed through Bureau de Change operators and transferred abroad. While civil proceedings have concluded with the forfeiture, a separate criminal trial remains ongoing.
“The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has formally handed over forfeited landed properties at Kaba District, Abuja, to the Federal Mortgage Bank of Nigeria (FMBN), in compliance with a final forfeiture order of the Federal High Court,” the agency stated. ICPC Chairman Dr. Musa Adamu Aliyu characterized the transfer as a milestone, stressing that recovered public assets must be returned to productive use rather than left idle.
To safeguard the remaining capital, the Federal High Court has directed both institutions to establish a joint oversight committee. The ICPC’s Constituency and Executive Project Tracking Division will supply representatives to monitor construction, and the finished homes will be allocated to the original intended beneficiaries. FMBN Managing Director Shehu Usman Osidi commended the recovery, describing it as proof of government commitment to protecting public assets.
For market participants, the case illustrates the persistent risks of capital diversion in Nigerian infrastructure financing, as well as the institutional mechanisms available to claw back stranded assets. The recovered project will add 962 units to a national housing pipeline struggling under a deficit estimated at 17 million units.
Closing that gap requires approximately 550,000 new units annually, demanding roughly N5.5 trillion in yearly investment over the next decade, according to former Housing Minister Ahmed Musa Dangiwa. The federal government is attempting to attract this capital through public-private partnerships under its Renewed Hope Housing Programme.
The Kaba District handover is the latest in a series of high-profile state asset recoveries. It follows the final forfeiture of 52 terrace and maisonette units in the upscale Lekki area and the Supreme Court's restoration of forfeited properties linked to former Central Bank of Nigeria Governor Godwin Emefiele.
