The Federal Mortgage Bank of Nigeria (FMBN) has announced the recovery of over N22 billion in loan arrears as part of ongoing institutional reforms aimed at strengthening its financial base and enhancing sustainable housing finance delivery.
Shehu Osidi, Managing Director and Chief Executive Officer of FMBN, made this known during the 2025 edition of the Bank’s Special Day at the Africa International Housing Show in Abuja on Thursday.
Osidi noted that the recovery includes N18.9 billion secured through specially constituted recovery task teams and an additional N3.1 billion from regular operations.
These efforts, he said, are part of a financial turnaround strategy designed to reposition the Bank as a key driver of affordable homeownership in Nigeria.
He further disclosed that loan approvals jumped from N39.7 billion in 2023 to N71.5 billion in 2024, while collections under the National Housing Fund (NHF) rose to N103 billion, up from N100 billion the previous year.
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Osidi further said that the Bank cleared a backlog of unaudited accounts covering 2018 to 2021 and posted an operational surplus of N11.5 billion in 2024, the first in over three decades with strong prospects for another surplus in 2025.
These financial breakthroughs, he noted, reflect the Bank’s renewed commitment to transparency, efficiency, and results.
Despite these gains, the FMBN boss said the institution remains grossly undercapitalised, with a current capital base of just N2.5 billion, far below global benchmarks and even local mortgage lenders.
Osidi called for urgent recapitalisation to the tune of at least N500 billion, arguing that without a stronger capital base, the Bank cannot effectively mobilise long-term funds, underwrite large-scale housing projects, or serve the millions of Nigerians in need of affordable homes.
He commended the Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, for already presenting a recapitalisation proposal to the Federal Executive Council, which has led to the constitution of an inter-agency committee working on a roadmap for implementation.
In line with President Bola Tinubu’s Renewed Hope Housing Agenda, Osidi said the Bank had issued a N100 billion off-taker guarantee to support housing projects across Abuja, Lagos, Kano, and other states.
“Notable disbursements include N19.9 billion for the Karsana housing project in Abuja and N27 billion for the Renewed Hope City in Ibeju-Lekki, Lagos, aimed at delivering 1,500 affordable apartment units”, he added.
To promote financial inclusion and widen housing access, FMBN is launching three new products starting in August 2025: a Non-Interest Mortgage Loan for Sharia-compliant financing; an NHF Diaspora Mortgage Loan, to be unveiled in partnership with NiDCOM and the Central Bank of Nigeria on August 31; and a Rent Assistance Product designed to offer short-term support to NHF contributors struggling with rent.
The Bank is also rolling out a Women Housing Initiative in partnership with the Federal Ministry of Women Affairs.
According to Osidi, the initiative aims to engage women across the housing value chain, from architectural design to construction and labour while increasing access to homeownership for women.
Osidi also said the Bank had also made significant headway on regulatory challenges, particularly the CBN’s single obligor limit, and expressed optimism that a final resolution was close.
He reiterated that recapitalisation presents an opportunity not only to boost financial capacity but also to realign the Bank’s business model with global standards.
He reaffirmed the management team’s commitment to transforming FMBN into a modern, transparent, and performance-driven institution.
Also speaking at the event, Ahmed Dangiwa Minister of Housing and Urban Development, challenged the Bank to do more to address Nigeria’s housing affordability crisis.
While applauding the Bank’s low-interest mortgage offerings with rates as low as 6% and tenors of up to 30 years, the Minister noted that these products remain out of reach for millions of Nigerians, including long-time NHF contributors.
“The biggest barrier to homeownership in Nigeria is not just the inadequate housing supply but the inability of many Nigerians to afford the available homes,” Dangiwa said.
Dangiwa who was represented by Mark Chieshe, Special Assistant on Media and Strategic Communication to the Minister, acknowledged the Bank’s recent achievements, including increased mortgage disbursements, rent-to-own initiatives, renovation loans, and progress in digital transformation.
However, he warned that the country was still far from solving the affordability challenge.
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“Progress is not the destination; it is the foundation. We must build on it. We need fresh thinking, innovative partnerships, and scalable financing models that go beyond what has been done before,” he stressed.
Dangiwa proposed a number of reform pathways, including government-backed interest buy-downs, income-based repayment models, and targeted products for the informal sector, a majority demographic often excluded from conventional housing finance systems.
He also called for more aggressive awareness campaigns to promote understanding of the NHF Scheme and mobilise greater public participation.
“This has to go beyond sensitisation. It must become a mass mobilisation effort using media, digital platforms, cooperatives, grassroots networks, and employers so every contributor understands their rights and how to access them,” he said.
Referencing FMBN’s statutory mandate under the FMBN Act of 1993, the Minister reiterated the Bank’s pivotal role in Nigeria’s quest for inclusive homeownership.
He urged the institution to play a leading role in the Renewed Hope State-by-State Homeownership and Housing Development Campaign launched earlier at the housing show, including working with state governments to unlock land and structure viable housing projects.
“FMBN remains our strongest instrument for delivering affordable mortgage finance in Nigeria. Its mandate is clear. Its progress is commendable. But the job is not done,” Dangiwa declared.
