FMBN reports N11.5bn surplus in 2024, targets recapitalisation, loan recovery
The Federal Mortgage Bank of Nigeria (FMBN) has recorded an operational surplus of ¦ 11.5 billion for the 2024 financial year, marking its first profit in over three decades. This milestone was attributed to strategic revenue expansion, improved financial management, and cost-cutting initiatives aimed at enhancing efficiency.
However, Managing Director/CEO Shehu Usman Osidi cautioned that the reported surplus would decrease once impairments were factored in.
Speaking at a press briefing on Wednesday to mark his first year in office, Osidi addressed the challenge of high non-performing loans (NPLs) inherited by the current administration, assuring that aggressive recovery efforts were already showing positive results.
FMBN also announced a ¦ 3 billion rise in National Housing Fund (NHF) contributions, increasing from ¦ 100 billion in 2023 to ¦ 103 billion in 2024. Osidi attributed this growth to renewed trust in the scheme among Nigerian workers.
One significant development was the re-entry of Kano State civil servants into the NHF scheme after 24 years, following an agreement signed on 1 January 2025. With a workforce of 160,000, Kano’s participation is expected to further boost contributions in the coming year.
Additionally, loan approvals nearly doubled in 2024, reaching ¦ 71.5 billion compared to ¦ 39.75 billion in 2023.
“Refunds to NHF contributors also increased, with ¦ 14.4 billion paid to 44,333 beneficiaries, up from ¦ 13.2 billion for 40,426 beneficiaries in 2023,” Osidi revealed.
Under President Bola Ahmed Tinubu’s Renewable Housing Programme, FMBN has played a significant role in housing development, providing a ¦ 100 billion off-take guarantee. The bank has also directly funded housing projects, including ¦ 19.9 billion for a development in Kasana, Abuja, and ¦ 27 billion for another in Lagos.
To improve mortgage accessibility, the institution secured approval from the Central Bank of Nigeria (CBN) for non-interest mortgage loans, aimed at providing financial inclusion for underserved populations.
“In June 2024, FMBN launched a seven-team task force to recover bad loans across Nigeria’s geopolitical zones. This initiative has successfully retrieved ¦ 10.9 billion, with an additional ¦ 3.1 billion recovered through routine channels,” Osidi stated.
He also revealed that in February 2024, the new management inherited six years’ worth of unaudited financial statements (2018–2023). Within nine months, the bank obtained CBN approval for audited accounts covering 2018 to 2021, reinforcing financial transparency.
To strengthen its capital base, FMBN is advocating for a ¦ 500 billion recapitalisation, with ¦ 250 billion expected from the Federal Government and the remaining balance from debt capital.
“A proposal has been submitted to the Federal Executive Council, and discussions are ongoing with the CBN, Ministry of Finance, and Bureau of Public Enterprises,” Osidi stated.
Other key initiatives include ongoing talks with Shelter Afrique Development Bank for international housing finance collaboration and the training of 350 staff in project management, with further capacity-building efforts planned for 2025.
Osidi reaffirmed FMBN’s commitment to financial sustainability, transparency, and service delivery, positioning the bank as a pivotal institution in expanding access to affordable homeownership in Nigeria.
