FMBN Records N152bn NHF Collection, Posts N19.5bn Surplus in 2-year Reform Push

The managing director/chief executive of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, on Wednesday unveiled sweeping gains in housing finance, mortgage delivery and institutional reforms, declaring that the Bank has recorded its strongest operational turnaround in decades under the current management.

Addressing journalists at a press briefing marking two years in office, Osidi said the bank achieved a historic N152.4 billion National Housing Fund (NHF) collection in 2025, noting that it is the highest in the scheme’s history alongside a net operating surplus of about N19.5 billion, up 68.4 per cent year-on-year.

He attributed the performance to wide-ranging reforms aimed at restoring confidence in the institution, deepening digital transformation, expanding housing delivery and strengthening financial sustainability.

“We have stabilised the institution, restored confidence, deepened impact and built strong foundations for the future,” Osidi said, noting that the results validate the reform agenda anchored on financial sustainability, customer impact, operational efficiency and institutional renewal.

The FMBN boss disclosed that NHF collections rose sharply from N103 billion in 2024 to N152.4 billion in 2025, while over 300,000 new contributors were registered within the two-year period. He said refund processing also improved significantly, with N15.6 billion paid to 55,068 beneficiaries in 2025, compared to N13.2 billion in 2023.

In a major confidence boost for the scheme, Osidi revealed that Oyo State workers who exited the NHF in 1999 had secured approval to return, saying Kano State was also finalising its re-entry after signing a Memorandum of Agreement with the bank.

In housing delivery, the Bank financed 6,911 housing units in 2025 alone, nearly tripling the 2,165 units delivered in 2024. Project loan disbursements surged to over N79 billion in 2025 from N31.5 billion in 2024, while individual NHF mortgage disbursements rose by more than 38 per cent to N8.2 billion.

Osidi said the bank’s Rent-to-Own scheme disbursed N7.1 billion to 367 beneficiaries, while Home Renovation Loans climbed by 86 per cent to N13.8 billion for over 15,000 workers, underscoring expanded access to affordable housing finance for low- and middle-income Nigerians.

The FMBN also played a central role in advancing the federal government’s Renewed Hope Housing Programme through a N100 billion off-taker guarantee for developers and direct funding of key housing projects across Abuja, Lagos and other states. The Ibeju-Lekki Renewed Hope City project received N27 billion, with 252 units already completed, while N19.9 billion was approved for the Karsana project in Abuja, where over 800 housing units are nearing completion.

On financial performance, Osidi said the bank recorded its first operational surplus in over 30 years in 2024, amounting to N11.58 billion, consolidating the gains with a N19.5 billion surplus in 2025. Operating income rose by over 30 per cent, while the asset base expanded by 27 per cent, reflecting increased housing finance activities.

He also disclosed that FMBN recovered N19 billion from wrongful deductions by the Office of the Accountant-General of the Federation, thereby strengthening the Bank’s liquidity position.

Despite the gains, Osidi warned that gross undercapitalisation remains a structural challenge, with paid-up capital at about N2.56 billion, stressing that the ongoing recapitalisation drive, targeting up to N750 billion, is critical to scaling nationwide housing delivery.

Beyond financial metrics, Osidi further stated that the Bank implemented deep institutional reforms, including the full deployment of its Core Banking Application in 2025 to enhance transparency, turnaround time, and the customer experience through digital platforms and USSD services. It also cleared long-standing backlogs in audited accounts and strengthened loan recovery frameworks, recovering over N27.3 billion in delinquent loans within two years.

“The Bank further rolled out innovative mortgage products such as non-interest mortgages, rent assistance loans, diaspora mortgage products and micro home improvement loans to broaden financial inclusion and attract foreign exchange inflows”, he added.

Looking ahead to 2026, Osidi said the Bank will prioritise recapitalisation, completion of ongoing housing projects, reduction of non-performing loans, deeper digital transformation and passage of the amended FMBN and NHF Acts to modernise the legal framework guiding housing finance.