FMBN records ₦6.5bn Q1 surplus – Official

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The Federal Mortgage Bank of Nigeria (FMBN) on Monday confirmed a ₦6.5 billion surplus in the first quarter of 2025.

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FMBN Managing Director and Chief Executive, Shehu Osidi, disclosed this while welcoming Nasir Gawuna, who assumed duty as the new board chairman in Abuja.

Mr Osidi described the surplus as proof that current management policies are effective and the Bank is moving in the right direction.

He added that loan approvals nearly doubled, rising from ₦39.7 billion in 2023 to ₦71.5 billion in 2024, increasing access to housing finance.

“Since the Executive Management Team took over in February 2024, the bank has recorded remarkable progress aligned with our shared vision,” he said.

He noted that teamwork had led to significant strides in strengthening the institution’s capacity and performance.

Importantly, FMBN cleared a four-year backlog of unaudited accounts within nine months – from 2018 to 2021 – reflecting transparency and better governance.

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Mr Osidi said the bank’s overall financial performance has also significantly improved under the new leadership.

“In 2024, we posted an operational surplus of ₦11.5 billion – the highest in over three decades,” he stated.

He added that prudent management and expanding operations placed the Bank on course for another surplus in 2025.

“Already, we have recorded a ₦6.5 billion surplus in the first quarter of 2025, a clear sign of progress,” Mr Osidi said.

According to him, loan approvals rose from ₦39.7 billion in 2023 to ₦71.5 billion in 2024, allowing more Nigerians to benefit from housing loans.

He further revealed that under the National Housing Fund (NHF), collections grew by ₦3 billion in 2024, reaching a total of ₦103 billion.

This was an increase compared to ₦100 billion collected by the Bank in 2023 under the same scheme.

FMBN also registered 658 employer organisations and 178,619 employees in 2024, up from 556 and 113,577 respectively in 2023.

“These achievements are the outcome of strategic planning and consistent effort,” he said.

Mr Osidi explained that the bank had adopted a new business approach and was challenging outdated practices.

“For example, on June 3, 2024, we launched seven Recovery Task Teams composed entirely of FMBN staff,” he stated.

He said the teams were deployed nationwide to recover delinquent loans, based on the belief that internal staff perform better.

“As a result, ₦10.9 billion in bad loans was recovered in 2024. That figure has since grown to ₦18.9 billion.

“An additional ₦3.1 billion was recovered through routine recovery activities during the same year.

“Technology and customer service are now key priorities for the Executive Management,” Mr Osidi stated.

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He said the bank aims to use digital tools to accelerate loan approvals and improve service delivery.

According to him, the bank is also preparing to launch new products by the end of the second quarter of 2025.

“These products are designed for the diaspora, non-interest, and informal market segments.

“To this end, we’ve secured approval from the CBN to implement non-interest ethical mortgages,” he noted.

This move responds to demand for alternative housing finance models aligned with ethical and religious values.

The News Agency of Nigeria (NAN) reports that FMBN is also engaging with NIDCOM and the CBN for the rollout of the Diaspora NHF Mortgage Loan.

The product will enable Nigerians abroad to invest in property and own homes in Nigeria.

(NAN)