The Federal Mortgage {Bank} of Nigeria (FMBN) is aiming to strengthen its capital base to N750 billion as a part of efforts to increase housing finance within the nation.
Managing Director and Chief Govt Officer of FMBN, Shehu Osidi, disclosed this whereas addressing journalists on Wednesday throughout an occasion marking his two years in workplace.
Osidi famous that the {bank}’s present paid-up capital stands at about N2.56 billion, a degree he described as insufficient to meaningfully sort out Nigeria’s housing deficit.
The managing director acknowledged that “the {bank} remained grossly undercapitalised, with paid-up capital standing at roughly N2.56 billion.
He revealed that engagements authorised by the Federal Govt Council (FEC) are ongoing with the Ministry of Finance, the Central Bank of Nigeria (CBN), the Ministry of Finance Included (MOFI), and the Bureau of Public Enterprises (BPE).
Though he admitted that the method has been gradual, Osidi expressed confidence that it will in the end ship transformative outcomes for each the {bank} and the broader housing sector.
He additionally disclosed that one of many key milestones achieved in 2025 was the complete deployment of the {bank}’s Core Banking Software (CBA), a challenge that had stalled for years earlier than the present administration took workplace.
Based on him, the brand new system has enhanced transaction processing, transparency, knowledge integrity, and turnaround time.
He added that the {bank} has additionally launched an Digital Customer Administration System to enhance buyer expertise, positioning FMBN as a extra technology-driven and customer-focused establishment.
The brand new N750 billion recapitalisation goal represents an upward revision from the N500 billion purpose beforehand set by the {bank} in 2025.
In February final yr, Osidi had expressed optimism that the N500 billion recapitalisation plan would materialise inside 2025, noting that administration supposed to work intently with stakeholders as directed by the FEC to attain the minimal goal.
Whereas the sooner recapitalisation purpose has but to be realised, FMBN has made progress in operational reforms, together with the profitable rollout of its Core Banking Software.
FMBN recorded a internet working surplus of N19.5 billion for the 2025 {financial} yr, reflecting greater than 68.4% year-on-year progress.
Based on Osidi, the {bank} has persistently posted surpluses because the present administration assumed workplace, marking a pointy turnaround from 2023 when solely N226,000 was recorded as surplus in its administration accounts.
He added that complete working earnings rose by over 30%, pushed by stronger curiosity earnings, price earnings, and different income streams.
Osidi additional highlighted that the {bank}’s asset base expanded by greater than 27%, reflecting elevated housing finance exercise and improved asset administration.
He additionally disclosed that FMBN efficiently recovered about N19 billion in wrongful deductions beforehand produced from its accounts by the Workplace of the Accountant Normal of the Federation, thereby strengthening its liquidity.
To deal with legacy non-performing loans, the {bank} established devoted restoration job groups nationwide. In 2025 alone, FMBN recovered over N16.1 billion in delinquent loans, along with N11.2 billion recovered in 2024, bringing complete recoveries over the previous two years to roughly N27.3 billion.
Wanting forward, Osidi mentioned the {bank}’s 2026 technique will deal with recapitalisation, decreasing non-performing loans, and advancing digital transformation in direction of a paperless system.
In February 2025, Osidi had reiterated that undercapitalisation stays a serious impediment to the {bank}’s means to finance inexpensive housing successfully.
He known as for a evaluation of the FMBN and Nationwide Housing Fund (NHF) Acts, stressing that authorized reforms are essential to resolve funding constraints and allow the {bank} to completely ship on its mandate of increasing homeownership for Nigerians.
