FMBN reports ₦11.5bn surplus in 2024, targets recapitalisation, loan recovery

The Federal Mortgage Bank of Nigeria (FMBN) has posted an operational surplus of ₦11.5 billion for the 2024 financial year—the first in over 30 years. This achievement was driven by strategic revenue growth, financial management improvements, and cost-cutting measures aimed at enhancing efficiency.

However, the bank’s Managing Director/CEO, Shehu Usman Osidi, noted that the surplus is expected to decline after impairments are applied.

Speaking at a press briefing to mark one year in office on Wednesday, Osidi acknowledged the challenge of high non-performing loans (NPLs) inherited by the current administration but assured that aggressive loan recovery efforts are already yielding results.

FMBN also reported a ₦3 billion increase in National Housing Fund (NHF) collections, rising from ₦100 billion in 2023 to ₦103 billion in 2024. Osidi attributed this growth to renewed confidence in the scheme among Nigerian workers.

According to Osidi, a major milestone was the return of Kano State civil servants to the NHF scheme after 24 years, following an agreement signed on January 1, 2025. With 160,000 workers, Kano’s re-entry is expected to boost contributions further in 2025.

Osidi also reported that loan approvals nearly doubled in 2024, reaching ₦71.5 billion, compared to ₦39.75 billion in 2023.

“Refunds to contributors under the NHF scheme also saw an increase, with ₦14.4 billion disbursed to 44,333 beneficiaries, up from ₦13.2 billion for 40,426 beneficiaries in 2023”, he added.

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As part of President Bola Ahmed Tinubu’s Renewable Housing Programme, FMBN said it has played a key role in housing development by providing a ₦100 billion off-take guarantee, alongside direct funding of ₦19.9 billion for a housing project in Kasana, Abuja as well as ₦27 billion for a project in Lagos.

To enhance mortgage accessibility, the bank also said that it secured approval from the Central Bank of Nigeria (CBN) for non-interest mortgage loans, designed to cater to financially excluded populations.

“In June 2024, FMBN launched a seven-team task force to recover bad loans across Nigeria’s geopolitical zones. This initiative has successfully recovered ₦10.9 billion, in addition to ₦3.1 billion recovered through regular channels”, Osidi stated.

He further disclosed that in February 2024, the new management inherited six years’ worth of unaudited financial statements (2018–2023).

Within nine months, the bank secured CBN approval for audited accounts covering 2018 to 2021, reinforcing financial credibility.

To strengthen its capital base, FMBN said it is advocating for a ₦500 billion recapitalization, with ₦250 billion expected from the Federal Government and the remainder from debt capital.

“A proposal has already been submitted to the Federal Executive Council, with ongoing discussions involving the CBN, Ministry of Finance, and Bureau of Public Enterprises”, he noted.

Osidi also highlighted other achievements to include discussions with Shelter Afrique Development Bank for international housing finance collaboration and training 350 staff in project management, with more training planned for 2025.

Osidi reaffirmed FMBN’s commitment to transparency, financial sustainability, and service delivery, positioning the bank as a key driver of affordable homeownership in Nigeria.