According to the constitution of Nigeria, the Federal Mortgage Bank was established to meet the housing needs of all citizens of the country.
A direct government intervention to expand the mortgage industry in Nigeria, the bank was established by the military government of Olusegun Obasanjo to be a wholesale and retail credit institution[2] that would provide long term financing to home buyers, building material firms and mortgage financial institutions.
The initial plan was to make the company pool long term deposits from government sources, mortgage companies, pension and trust funds and private individuals to fund its credit activities at competitive interest rates.
However, the objectives of the federal government's housing policy were slow to become a realization, in 1989 the administration of Ibrahim Babangida liberalized the housing finance sector[2] and opened up opportunities for retail oriented primary mortgage institutions.
[1] The activities of the bank have been geared towards the development and regulation of primary mortgage originators and managing the National Housing Fund.