Abuja: Mr. Shehu Osidi, the Managing Director and Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), announced that the bank recovered N18.9 billion in 2024 from bad loans. This announcement was made during FMBN Day at the Africa International Housing Show (AIHS) in Abuja.
According to News Agency of Nigeria, the theme for the Housing Show is ‘Re-imagining Housing Finance: Opportunities and Lessons for FMBN’. At the same event in 2024, FMBN had introduced seven recovery task teams to manage delinquent loans in various geo-political zones across Nigeria. These teams successfully recovered over N10.9 billion, complementing the bank’s regular recovery operations, which brought in an additional N3.1 billion, totaling N18.9 billion by the end of 2024.
Osidi highlighted that the bank also significantly increased its loan approvals during this period. A total of N71.5 billion in loans was approved in 2024, compared to N39.7 billion in 2023. Under the National Housing Fund (NHF) operations, FMBN’s collections grew by three billion naira to N103 billion in 2024, up from N100 billion in the previous year.
In terms of financial transparency, Osidi noted that FMBN cleared a four-year backlog of unaudited accounts from 2018 to 2021, underscoring its commitment to good governance. He expressed optimism that FMBN would be current with its audited accounts by the end of 2025.
The financial performance of FMBN has also seen an improvement, with an operational surplus of N11.5 billion, marking the first such achievement in over three decades. Osidi attributed this success to prudent management and expressed confidence in achieving another surplus in 2025.
Osidi stated that FMBN is actively supporting the Ministry of Housing’s agenda under President Bola Tinubu’s Renewed Hope Housing programme. The bank has provided a N100 billion off-taker guarantee to mobilize funding for housing projects under this initiative across Nigeria, with projects ongoing in locations like Abuja, Kano, and Lagos.
FMBN has also extended a funding facility of N19.9 billion for the Karsana project in Abuja and is investing N27 billion in Renewed Hope City, Ibeju Lekki, Lagos, to deliver 1,500 units of two and three-bedroom apartments. The bank is providing mortgages for NHF contributors to acquire these homes.
Additionally, Osidi announced the introduction of new products aimed at enhancing affordable home ownership and promoting financial inclusion. Starting in August, FMBN will roll out three innovative products: the FMBN Non-Interest Mortgage Loan, the FMBN National Housing Fund (NHF) Diaspora Mortgage Loan, and a Rent Assistance product. The Diaspora Mortgage Loan, developed in collaboration with NiDCOM and the Central Bank of Nigeria, is scheduled for launch on August 31.