FMBN Reports N11.5bn Surplus In 2024, Targets Loan Recovery, Recapitalisation

The Federal Mortgage Bank of Nigeria (FMBN) said for the first time in 30 years, it has recorded an operational surplus of N11.5 billion in just 2024 financial year

Speaking at a press briefing, yesterday to mark one year in office , the managing director of the FMBN, Shehu Usman Osidi made the disclosure while explaining that the achievement was driven by strategic revenue growth, financial management improvements, and cost-cutting measures aimed at enhancing efficiency.

He however noted that the surplus is expected to decline after impairments are applied and acknowledged the challenge of high non-performing loans (NPLs) inherited by the current administration but assured that aggressive loan recovery efforts are already yielding results.

The managing director also reported a N3 billion increase in National Housing Fund (NHF) collections, rising from N100 billion in 2023 to N103 billion in 2024 and attributed this growth to renewed confidence in the scheme among Nigerian workers.

According to Osidi, a major milestone was the return of Kano State civil servants to the NHF scheme after 24 years, following an agreement signed on January 1, 2025. With 160,000 workers, Kano’s re-entry is expected to boost contributions further in 2025.

Osidi also reported that loan approvals nearly doubled in 2024, reaching N71.5 billion, compared to N39.75 billion in 2023.

“Refunds to contributors under the NHF scheme also saw an increase, with N14.4 billion disbursed to 44,333 beneficiaries, up from N13.2 billion for 40,426 beneficiaries in 2023”.

“In June 2024, FMBN launched a seven-team task force to recover bad loans across Nigeria’s geopolitical zones. This initiative has successfully recovered N10.9 billion, in addition to N3.1 billion recovered through regular channels”, Osidi stated.

To strengthen its capital base, FMBN said it is advocating for a N500 billion recapitalisation, with N250 billion expected from the federal government and the remainder from debt capital.

“A proposal has already been submitted to the Federal Executive Council, with ongoing discussions involving the CBN, Ministry of Finance, and Bureau of Public Enterprises”, he noted.

He further disclosed that in February 2024, the new management inherited six years’ worth of unaudited financial statements (2018–2023).

Within nine months, the bank secured CBN approval for audited accounts covering 2018 to 2021, reinforcing financial credibility.

To strengthen its capital base, FMBN said it is advocating for a N500 billion recapitalisation, with N250 billion expected from the federal government and the remainder from debt capital.

“A proposal has already been submitted to the Federal Executive Council, with ongoing discussions involving the CBN, Ministry of Finance, and Bureau of Public Enterprises”, he noted.