The Federal Mortgage Bank of Nigeria (FMBN) recorded a historic N103 billion collection for the National Housing Fund (NHF) in 2024, marking the highest in the bank’s history.
This achievement was disclosed by FMBN’s Managing Director and Chief Executive, Shehu Osidi, during a press conference on Wednesday in Abuja, as he marked his one-year anniversary leading the bank’s management team, as reported by the News Agency of Nigeria (NAN).
Osidi revealed that the N103 billion NHF collection represented a N3 billion increase from the N100 billion recorded in 2023.
He attributed the growth to renewed trust and participation in the NHF scheme by Nigerian workers, reflecting FMBN’s enhanced efficiency, transparency, and impact on the country’s housing and mortgage finance sector.
“Under the National Housing Fund (NHF) operations, our collections grew by N3 billion in 2024 resulting in a total collection of N103 billion, compared to the N100 billion the bank recorded in 2023.
“This increase in NHF contributions demonstrates renewed trust and participation in the NHF scheme by Nigerian workers,” Osidi stated.
He also highlighted a significant milestone with the return of Kano State civil servants to the NHF scheme after a 24-year absence. This development followed a Memorandum of Agreement (MoA) signed between FMBN and the Kano State Government on January 31, 2024. Osidi noted that this would significantly boost NHF collections in 2025, given Kano State’s workforce of over 160,000 employees.
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Osidi explained that FMBN’s strategic focus on institutional reforms, financial sustainability, and stronger stakeholder collaboration contributed to the record-breaking NHF collection.
He added that under his leadership, 658 employer organisations and 178,619 employees were registered in 2024, compared to 556 and 113,577, respectively, in 2023.
- The bank also achieved notable financial improvements, recording an operational surplus of N11.58 billion in its 2024 management accounts, the first of such in over 30 years. However, Osidi cautioned that this figure would decrease significantly after accounting for impairments, largely due to non-performing loans inherited by the current management.
- To address this challenge, FMBN implemented stricter loan appraisal processes and inaugurated seven recovery task teams to recover delinquent loans across Nigeria’s geo-political zones. These initiatives yielded N10.9 billion in bad loan recoveries, in addition to N3.1 billion recovered through regular activities in 2024.
- The bank’s loan operations also saw a significant increase, with N71.5 billion approved in 2024, up from N39.7 billion in 2023. Meanwhile, FMBN’s refund operations disbursed N14.4 billion to 44,333 beneficiaries, compared to N13.2 billion refunded to 40,426 beneficiaries in 2023.
Osidi reiterated FMBN’s commitment to driving affordable homeownership in Nigeria by ensuring the bank’s financial viability and operational efficiency. He also disclosed ongoing efforts to recapitalize the bank, noting that its current capital of N2.5 billion was grossly inadequate for optimal performance.