The Federal Mortgage Bank of Nigeria has approved housing loans worth N71.5bn in the past year, an increase from N39.7bn recorded in 2023.

The Managing Director/Chief Executive of FMBN, Shehu Osidi, made this disclosure during the bank’s first-anniversary press conference held in Abuja recently.

Speaking on the bank’s achievements, Osidi highlighted improvements in financial and operational performance, emphasising a focus on transparency, efficiency, and stakeholder collaboration.

He said, “Under our loan operations, a total sum of N71.5b was approved in the past year compared to N39.7b in 2023.

“In the past year, through our strategic focus on revenue growth, prudent financial management, and cost-efficiency measures, we reduced operational expenses while maintaining service excellence,” he stated.

He revealed that FMBN recorded an operational surplus of N11.58 bn in 2024, the first time the institution has achieved such a surplus in over 30 years.

However, he cautioned that this figure might be adjusted due to impairment factors, adding, “We have set out to tackle frontally all aspects of our operations that lead to high impairment on our results, especially in tackling the high non-performing loans inherited by the current management.”

Osidi further noted improvements in the National Housing Fund collections, which grew by N3 bn in 2024, reaching a total of N103bn compared to N100 bn in 2023.

Additionally, the number of registered employers under the NHF scheme increased to 658, while employee registrations rose to 178,619 in 2024, compared to 556 and 113,577, respectively, in the previous year.

A notable milestone was the re-enrolment of Kano State civil servants into the NHF scheme after a 24-year hiatus.

He added, “The Memorandum of Agreement to facilitate this was signed between the bank and the state government on January 31, 2025. This will positively impact the NHF collections in 2025, as Kano State has a workforce of over 160,000.

FMBN also refunded N14.4bn to 44,333 beneficiaries in 2024, up from N13.2bn refunded to 40,426 beneficiaries in 2023.”

Osidi reiterated the bank’s commitment to supporting affordable housing development, revealing that the bank had provided an N100bn off-takers guarantee for the Renewed Hope Housing Projects nationwide.

In addition, the bank is directly funding projects in Karsana, Abuja, with N19.9bn and in Ibeju Lekki, Lagos, with a N27bn facility.

Osidi emphasised the importance of technology in streamlining operations, announcing that FMBN had accelerated the deployment of its Core Banking Application.

“Today, I am delighted to announce that the majority of our transactions are now being conducted under the CBA,” he said, adding that full implementation is expected to conclude by March 31, 2025.

Addressing the challenge of non-performing loans, Osidi stated that the bank had recovered N10.9bn in bad loans through newly established recovery task teams and an additional N3.1bn through normal recovery activities.

“We introduced stricter loan appraisal processes to improve credit quality, reduce loan defaults, and enhance recovery mechanisms,” he explained.

He also spoke on the bank’s efforts to recapitalise and strengthen its financial standing and described the current N2.5 bn paid-up capital as “grossly inadequate,” revealing that the bank was working towards securing an N500 bn capital injection.

“Out of this, N250 bn is to be injected by the Federal Government while we will raise the balance through debt capital,” he disclosed.

He further highlighted engagements with the Federal Executive Council, the Central Bank of Nigeria, and other key stakeholders to resolve regulatory challenges affecting the bank’s mortgage financing capacity.

“Arising from our strategic engagement on this issue with stakeholders, including the CBN, MBAN, and the National Assembly, we believe that we have reached a common understanding with the CBN, and a final resolution will soon be achieved,” Osidi stated.

Another key achievement, according to Osidi, was the clearance of a backlog of unapproved audited accounts.

“Thanks to our constructive engagements and collaborative efforts, the 2018, 2019, 2020, and 2021 accounts have now been approved by the CBN. This was achieved within nine months of our assumption of office,” he revealed.

He also announced the introduction of non-interest mortgage loans, approved by the CBN, to cater for segments of the population seeking ethical financing options.

He reaffirmed the bank’s commitment to transparency and accountability, citing FMBN’s improved governance frameworks and public engagement initiatives.

Osidi concluded by expressing optimism about the bank’s future, stressing its determination to expand access to affordable housing and mortgage financing in Nigeria.