Abuja: The Federal Mortgage Bank of Nigeria (FMBN) has announced a net operating surplus of N19.5 billion for the 2025 financial year, marking a notable year-on-year growth of over 68.4 per cent. Speaking at his two-year anniversary event in Abuja, the Managing Director and Chief Executive of FMBN, Shehu Osidi, highlighted the significant turnaround, attributing it to deliberate reforms implemented by the current administration.
According to News Agency of Nigeria, Osidi detailed that the FMBN has consistently generated surpluses since the new management assumed office, a stark contrast to 2023 when the bank recorded only N226,000 as surplus. In 2024, the bank achieved an operational surplus of N11.58 billion, the first in over three decades. The 2025 surplus of N19.5 billion, although subject to potential reduction after external audits, underscores the bank’s capacity to generate operational surpluses.
Osidi further explained that FMBN’s total operating income increased by over 30 per cent, driven by improved interest income, fee income, and other revenue streams. The bank’s asset base also expanded by more than 27 per cent, reflecting enhanced housing finance activities and robust asset management. Additionally, the bank recovered approximately N19 billion in wrongful deductions from its accounts, strengthening its liquidity position.
Despite these financial achievements, Osidi acknowledged that FMBN remains undercapitalised, with a paid-up capital of roughly N2.56 billion. To address this, the bank is pursuing a recapitalisation initiative targeting up to N750 billion. The process involves engagements with the Ministry of Finance, the Central Bank of Nigeria, the Ministry of Finance Incorporated, and the Bureau of Public Enterprises, with approval from the Federal Executive Council.
A significant milestone for FMBN in 2025 was the full deployment of its Core Banking Application, which had faced delays for years. The new system has enhanced transaction processing, transparency, data integrity, and service turnaround time, allowing customers to access services through digital platforms and USSD channels. Additionally, the bank has implemented an Electronic Visitor Management System to improve customer experience.
On governance, Osidi reported progress in clearing a backlog of unapproved audited accounts from 2018 to 2023. Within one year, accounts from 2018 to 2021 were approved, the 2022 accounts submitted for approval, and the 2023 audit nearing completion. Osidi committed to clearing all outstanding audit backlogs by the end of 2026.
FMBN has also made strides in addressing legacy non-performing loans, recovering over N16.1 billion in delinquent loans in 2025 and N11.2 billion in 2024, totaling approximately N27.3 billion in recoveries over two years. The bank’s financial inclusion mandate has led to the launch of new products targeted at the informal sector to expand access to affordable housing finance.
Looking ahead, FMBN’s strategy for 2026 includes prioritising recapitalisation, reducing non-performing loans, and advancing towards a paperless environment. The bank aims to secure the passage and Presidential Assent for the FMBN and NHF Acts to modernize its legal framework. Expanding partnerships with state governments, PMBs, labour unions, and private developers is also part of the strategy, along with implementing more labour-friendly housing projects.
Osidi reaffirmed his commitment to supporting the Federal Government’s Renewed Hope housing agenda and transforming FMBN into a financially sound and operationally efficient institution. He concluded by stating that FMBN is on a path of recovery and reform, with a positive and measurable trajectory.