The Federal Mortgage Bank of Nigeria (FMBN) is aiming to strengthen its capital base to N750 billion as part of efforts to expand housing finance in the country.
Managing Director and Chief Executive Officer of FMBN, Shehu Osidi, disclosed this while addressing journalists on Wednesday during an event marking his two years in office.
Osidi noted that the bank’s current paid-up capital stands at about N2.56 billion, a level he described as inadequate to meaningfully tackle Nigeria’s housing deficit.
What they are saying
The managing director acknowledged that “the bank remained grossly undercapitalised, with paid-up capital standing at approximately N2.56 billion.
- “To address this, FMBN is pursuing a recapitalisation drive targeting up to N750 billion.”
He revealed that engagements approved by the Federal Executive Council (FEC) are ongoing with the Ministry of Finance, the Central Bank of Nigeria (CBN), the Ministry of Finance Incorporated (MOFI), and the Bureau of Public Enterprises (BPE).
Although he admitted that the process has been gradual, Osidi expressed confidence that it would ultimately deliver transformative results for both the bank and the broader housing sector.
He also disclosed that one of the key milestones achieved in 2025 was the full deployment of the bank’s Core Banking Application (CBA), a project that had stalled for years before the current management took office.
According to him, the new system has enhanced transaction processing, transparency, data integrity, and turnaround time.
- “Customers can now access services such as registration and remittances through the bank’s digital platform and USSD channel.”
He added that the bank has also introduced an Electronic Visitor Management System to improve customer experience, positioning FMBN as a more technology-driven and customer-focused institution.
Backstory
The new N750 billion recapitalisation target represents an upward revision from the N500 billion goal previously set by the bank in 2025.
In February last year, Osidi had expressed optimism that the N500 billion recapitalisation plan would materialise within 2025, noting that management intended to work closely with stakeholders as directed by the FEC to achieve the minimum target.
While the earlier recapitalisation goal has yet to be realised, FMBN has made progress in operational reforms, including the successful rollout of its Core Banking Application.
More insights
FMBN recorded a net operating surplus of N19.5 billion for the 2025 financial year, reflecting more than 68.4% year-on-year growth.
According to Osidi, the bank has consistently posted surpluses since the current management assumed office, marking a sharp turnaround from 2023 when only N226,000 was recorded as surplus in its management accounts.
- “In 2024, the year we came in, the Bank recorded an operational surplus of N11.58 billion, the first in over 30 years.
- “In 2025, we consolidated these gains with a net operating surplus of about N19.5 billion by our Management Accounts, representing over 68.4% 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.”
He added that total operating income rose by over 30%, driven by stronger interest income, fee income, and other revenue streams.
Osidi further highlighted that the bank’s asset base expanded by more than 27%, reflecting increased housing finance activity and improved asset management.
He also disclosed that FMBN successfully recovered about N19 billion in wrongful deductions previously made from its accounts by the Office of the Accountant General of the Federation, thereby strengthening its liquidity.
To address legacy non-performing loans, the bank established dedicated recovery task teams nationwide. In 2025 alone, FMBN recovered over N16.1 billion in delinquent loans, in addition to N11.2 billion recovered in 2024, bringing total recoveries over the past two years to approximately N27.3 billion.
Looking ahead, Osidi said the bank’s 2026 strategy will focus on recapitalisation, reducing non-performing loans, and advancing digital transformation towards a paperless system.
What you should know
In February 2025, Osidi had reiterated that undercapitalisation remains a major obstacle to the bank’s ability to finance affordable housing effectively.
He called for a review of the FMBN and National Housing Fund (NHF) Acts, stressing that legal reforms are necessary to resolve funding constraints and enable the bank to fully deliver on its mandate of expanding homeownership for Nigerians.
