WorldStage– In spite of recent strong financial performance, the Managing Director of Federal Mortgage Bank of Nigeria (FMBN), Shehu Osidi acknowledged that the bank remained grossly undercapitalised, with paid-up capital standing at approximately ₦2.56 billion.
Speaking at his two years anniversary, on Wednesday in Abuja, he said to address this, FMBN is pursuing a recapitalisation drive targeting up to ₦750 billion.
He said that engagements approved by the Federal Executive Council were ongoing with the Ministry of Finance, the Central Bank of Nigeria (CBN), the Ministry of Finance Incorporated (MOFI) and the Bureau of Public Enterprises (BPE).
He explained that although the process have progressed slowly, however, the bank was confident that it would yield transformative outcomes for the bank and the housing sector.
He announced a net operating surplus of ₦19.5 billion for the 2025 financial year, representing over 68.4 per cent year-on-year growth, describing the turnaround as a reflection of deliberate reforms.
According to Osidi, the Bank generated consistent surpluses since the current management assumed office, a significant shift from 2023 when only ₦226,000 was recorded as surplus in management accounts before the new leadership took over.
“In 2024, the year we came in, the Bank recorded an operational surplus of ₦11.58 billion, the first in over 30 years.
“In 2025, we consolidated these gains with a net operating surplus of about ₦19.5b by our Management Accounts, representing over 68.4 per cent growth year-on-year.
“It is however to be noted that when impairment is applied after the external audit, this figure may come down significantly.
“Notwithstanding, this performance demonstrates the capacity of the Bank to generate surplus in its operations.”
According to Osidi, total operating income also grew by over 30 per cent, driven by improved interest income, fee income and other incomes.
He highlighted that FMBN’s asset base expanded by over 27 per cent, reflecting increased housing finance activities and better asset management.
He noted that the bank also achieved the recovery of some of the wrongful deductions from FMBN’s accounts made by the Office of the Accountant General of the Federation, amounting to about ₦19 billion, thereby strengthening its liquidity position.
The managing director disclosed that a major milestone achieved in 2025 was the full deployment of the bank’s Core Banking Application (CBA), which had stalled for years prior to the current administration.
The new system, he said, has significantly improved transaction processing, transparency, data integrity and service turnaround time.
“Customers can now access services such as registration and remittances through the bank’s digital platform and USSD channel.
Additionally, he said the bank had onboarded an Electronic Visitor Management System to enhance customer experience, positioning FMBN for a more technology-driven and customer-centric future.
On governance, Osidi said the bank inherited six years of unapproved audited accounts (2018–2023), adding that within one year, accounts from 2018 to 2021 were approved, while the 2022 accounts have been submitted to the CBN for approval and the 2023 audit was nearing completion.
“This represents a major leap in governance, transparency and institutional credibility. Working with the CBN, we are determined to clear all backlogs and be up to date before the end of 2026,” he said.
He said the management pledged to clear all outstanding audit backlogs and ensure the bank was up to date before the end of 2026.
Osidi said that to tackle legacy non-performing loans, FMBN constituted dedicated loan recovery task teams nationwide and in 2025 alone, the bank recovered over ₦16.1 billion in delinquent loans, in addition to ₦11.2 billion recovered in 2024.
He said it brought total recoveries in the last two years to approximately ₦27.3 billion, reflecting tighter credit controls and improved recovery strategies.
He explained that in line with its financial inclusion mandate, the bank rolled out several new products targeted at the informal sector aimed at expanding access to affordable housing finance across all segments of Nigerian society.
He said that looking ahead, FMBN’s 2026 strategy would be to prioritise recapitalisation, reduction of non-performing loans, and digital transformation towards a paperless environment.
“Our strategy remains to achieve passage and obtain Presidential Assent for the FMBN and NHF Acts, to align our legal framework with modern realities.
“Expanded partnerships with State Governments, PMBs, labour unions and private developers and deliberately implement more labour friendly housing projects.”
Osidi reaffirmed the management’s commitment to supporting the Federal Government’s Renewed Hope housing agenda and strengthening FMBN into a financially sound and operationally efficient institution.
“Two years on, FMBN is clearly on a path of recovery, reform and renewed relevance. While challenges remain, the trajectory is positive, measurable and reassuring.”
