Nigerian Mortgage Bank Recoups N18.9 Billion in Bad Loans, Shows Improved Financial Performance
ABUJA, August 2025 — Shehu Osidi, the Managing Director and Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), announced that the bank had successfully recovered N18.9 billion in bad loans by the end of 2024. Osidi made these revelations at the ongoing Africa International Housing Show (AIHS) in Abuja, under the theme “Re-imagining Housing Finance: Opportunities and Lessons for FMBN.”
In 2024, FMBN constituted seven recovery task teams, which, by the end of the year, had recovered over N10.9 billion in delinquent loans. This recovery effort was supplemented by N3.1 billion from the bank’s routine recovery activities, leading to a cumulative recovery of over N18.9 billion.
Osidi also highlighted significant growth in loan approvals within the same period. The bank approved a total of N71.5 billion in loans, up from N39.7 billion in 2023. Moreover, under the National Housing Fund (NHF) operations, the bank’s collections grew by N3 billion in 2024, reaching a total of N103 billion compared to the N100 billion collected in 2023.
In a demonstration of its commitment to financial transparency, FMBN cleared a four-year backlog of unaudited accounts from 2018 to 2021. Osidi expressed confidence that the bank would be up-to-date with its audited accounts by the end of 2025.
The bank’s financial performance has also improved dramatically. Osidi announced an operational surplus of N11.5 billion, marking the first time the bank has achieved this feat in its over 30-year history. He attributed this success to prudent management and growing operations, setting the stage for another surplus in 2025.
Osidi underscored FMBN’s support for the Ministry of Housing in its housing delivery agenda under President Bola Tinubu’s Renewed Hope Housing programme. The bank has provided a N100 billion off-taker guarantee to facilitate funding for housing and estate projects across Nigeria, with ongoing projects in Abuja, Kano, Lagos, and other locations. FMBN has also extended additional funding facilities, including N19.9 billion for the Karsana project in Abuja and N27 billion for the Renewed Hope City in Ibeju-Lekki, Lagos.
The bank is committed to deepening affordable homeownership and promoting financial inclusion. Starting from August, FMBN will launch three innovative products:
- The FMBN Non-Interest Mortgage Loan, aligning with ethical finance principles to cater to Nigerians who prefer non-interest banking models.
- The FMBN National Housing Fund, NHF, Diaspora Mortgage Loan, a safe and seamless homeownership pathway for Nigerians living abroad, set to launch on August 31 in collaboration with NiDCOM and the Central Bank of Nigeria (CBN).
- Rent Assistance, a customised product tailored to meet the immediate needs of NHF contributors in both formal and informal sectors before they own their homes.
With these initiatives, FMBN continues to demonstrate its dedication to fostering a thriving housing sector and promoting financial inclusion in Nigeria.
