The Federal Mortgage Bank of Nigeria has announced a net operating surplus of ₦19.5 billion for the 2025 financial year, representing year-on-year growth of over 68.4 per cent.
On Wednesday in Abuja, FMBN’s chief executive, Shehu Osidi, described the turnaround as a reflection of deliberate reforms.
According to Mr Osidi, the bank has generated consistent surpluses since the current management assumed office, a significant shift from 2023, when only ₦226,000 was recorded as a surplus in the 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 ₦19.5 billion 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,” stated Mr Osidi.
According to Mr 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 recovered 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.
Despite strong financial performance, the managing director acknowledged that the bank remained grossly undercapitalised, with paid-up capital at approximately ₦2.56 billion. According to him, 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, the Ministry of Finance Incorporated and the Bureau of Public Enterprises (BPE).
He explained that although the process has progressed slowly, the bank was confident it would yield transformative outcomes for the bank and the housing sector.
The FMBN boss disclosed that a major milestone achieved in 2025 was the full deployment of the bank’s Core Banking Application, which had stalled for years under the previous administration.
The new system, he said, has significantly improved transaction processing, transparency, data integrity and service turnaround time.
Additionally, he said the bank had onboarded an Electronic Visitor Management System to enhance the customer experience, positioning FMBN for a more technology-driven, customer-centric future.
On governance, Mr Osidi said the bank inherited six years of unapproved audited accounts (2018–2023), adding that within one year, accounts for 2018-2021 were approved, while the 2022 accounts have been submitted to the CBN for approval, and the 2023 audit was nearing completion.
He said the management pledged to clear all outstanding audit backlogs and ensure the bank was up to date before the end of 2026.
Mr 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 to expand access to affordable housing finance across all segments of Nigerian society.
He said that, looking ahead, FMBN’s 2026 strategy would prioritise recapitalisation, the reduction of non-performing loans, and digital transformation towards a paperless environment.
(NAN)