Wisdom Engraced
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The Federal Mortgage Bank of Nigeria (FMBN) has achieved a historic operational surplus of N11.58 billion, marking a significant financial turnaround in its 30-year history. Managing Director, Shehu Usman Osidi, revealed this in Abuja while reviewing the bank’s performance under its current leadership.
Osidi attributed the surplus to “prudent financial management, cost-efficiency measures, and a stronger balance sheet, though adjustments for impairments are expected.” He stated, “These efforts have resulted in an operational surplus of N11.58 billion from our management accounts for 2024. This is the first such experience since FMBN came into existence over 30 years ago.”
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The FMBN is also pursuing a N500 billion recapitalization plan, with N250 billion from the Federal Government and the remainder through debt capital to sustain its growth. Osidi said, “FMBN intends to seek the cooperation of stakeholders as directed by FEC for necessary action towards attaining the recapitalization target of the bank to the tune of the minimum of N500 billion. This is critical and central to the effective delivery of our mandate.”
A proposal has been submitted to the Federal Executive Council (FEC), which has directed further engagements with key financial institutions. The bank’s National Housing Fund (NHF) contributions rose to N103 billion, fueled by increased compliance and the reentry of Kano State after a 24-year absence.
Osidi noted, “Mortgage approvals also surged to N71.5 billion in 2024, nearly doubling the previous year’s figures. Meanwhile, aggressive loan recovery efforts have yielded N10.9 billion from non-performing loans, in addition to regular recoveries of N3.1 billion.”
The FMBN is also backing the Renewed Hope Housing Program, providing a N100 billion off-takers’ guarantee and significant project funding for Karsana, Abuja (N19.9 billion) and Ibeju Lekki, Lagos (N27 billion).
To further strengthen its operations, the bank plans to expand its branch network, automate NHF contributions, introduce new mortgage products, and push for key policy reforms. Osidi revealed, “To further strengthen its operations, the bank plans to expand its branch network, automate NHF contributions, introduce new mortgage products, and push for key policy reforms.”
Osidi reaffirmed FMBN’s commitment to transparency, efficiency, and affordable housing finance, positioning it as a driving force in Nigeria’s real estate sector.
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