The Federal Mortgage Bank of Nigeria (FMBN) is aiming to strengthen its capital base to N750 billion as a part of efforts to develop housing finance within the nation.
Managing Director and Chief Government Officer of FMBN, Shehu Osidi, disclosed this whereas addressing journalists on Wednesday throughout an occasion marking his two years in workplace.
Osidi famous that the bank’s present paid-up capital stands at about N2.56 billion, a degree he described as insufficient to meaningfully sort out Nigeria’s housing deficit.
What they’re saying
The managing director acknowledged that “the bank remained grossly undercapitalised, with paid-up capital standing at roughly N2.56 billion.
- “To deal with this, FMBN is pursuing a recapitalisation drive focusing on as much as N750 billion.”
He revealed that engagements authorized by the Federal Government Council (FEC) are ongoing with the Ministry of Finance, the Central Bank of Nigeria (CBN), the Ministry of Finance Integrated (MOFI), and the Bureau of Public Enterprises (BPE).
Though he admitted that the method has been gradual, Osidi expressed confidence that it will finally ship transformative outcomes for each the bank and the broader housing sector.
He additionally disclosed that one of many key milestones achieved in 2025 was the total deployment of the bank’s Core Banking Software (CBA), a undertaking that had stalled for years earlier than the present administration took workplace.
In accordance with him, the brand new system has enhanced transaction processing, transparency, information integrity, and turnaround time.
- “Prospects can now entry providers similar to registration and remittances by the bank’s digital platform and USSD channel.”
He added that the bank has additionally launched an Digital Customer Administration System to enhance customer expertise, positioning FMBN as a extra technology-driven and customer-focused establishment.
Backstory
The brand new N750 billion recapitalisation goal represents an upward revision from the N500 billion objective beforehand set by the bank in 2025.
In February final yr, Osidi had expressed optimism that the N500 billion recapitalisation plan would materialise inside 2025, noting that administration supposed to work carefully with stakeholders as directed by the FEC to attain the minimal goal.
Whereas the sooner recapitalisation objective has but to be realised, FMBN has made progress in operational reforms, together with the profitable rollout of its Core Banking Software.
Extra insights
FMBN recorded a internet working surplus of N19.5 billion for the 2025 monetary yr, reflecting greater than 68.4% year-on-year progress.
In accordance with Osidi, the bank has persistently posted surpluses for the reason that present administration assumed workplace, marking a pointy turnaround from 2023 when solely N226,000 was recorded as surplus in its administration accounts.
- “In 2024, the yr we got here in, the Bank recorded an operational surplus of N11.58 billion, the primary in over 30 years.
- “In 2025, we consolidated these features with a internet working surplus of about N19.5 billion by our Administration Accounts, representing over 68.4% progress year-on-year.
- “It’s nonetheless to be famous that when impairment is utilized after the exterior audit, this determine could come down considerably.”
He added that complete working earnings rose by over 30%, pushed by stronger curiosity earnings, payment earnings, and different income streams.
Osidi additional highlighted that the bank’s asset base expanded by greater than 27%, reflecting elevated housing finance exercise and improved asset administration.
He additionally disclosed that FMBN efficiently recovered about N19 billion in wrongful deductions beforehand created from its accounts by the Workplace of the Accountant Common of the Federation, thereby strengthening its liquidity.
To deal with legacy non-performing loans, the bank established devoted restoration process groups nationwide. In 2025 alone, FMBN recovered over N16.1 billion in delinquent loans, along with N11.2 billion recovered in 2024, bringing complete recoveries over the previous two years to roughly N27.3 billion.
Trying forward, Osidi stated the bank’s 2026 technique will give attention to recapitalisation, decreasing non-performing loans, and advancing digital transformation in direction of a paperless system.
What you need to know
In February 2025, Osidi had reiterated that undercapitalisation stays a serious impediment to the bank’s potential to finance inexpensive housing successfully.
He known as for a assessment of the FMBN and Nationwide Housing Fund (NHF) Acts, stressing that authorized reforms are essential to resolve funding constraints and allow the bank to completely ship on its mandate of increasing homeownership for Nigerians.
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