The Federal Mortgage Bank of Nigeria has announced a net operating surplus of ₦19.5 billion for the 2025 financial year.

This figure represents a year-on-year growth of over 68.4 per cent.

The announcement was made on Wednesday in Abuja by FMBN’s chief executive, Shehu Osidi. He described the turnaround as a reflection of deliberate reforms.

Mr Osidi stated that the bank has generated consistent surpluses since the current management assumed office. This marks a significant shift from 2023, when only ₦226,000 was recorded as a surplus in the management accounts before the new leadership took over.

“In 2024, the year we came in, the Bank recorded an operational surplus of ₦11.58 billion, the first in over 30 years. In 2025, we consolidated these gains with a net operating surplus of about ₦19.5 billion by our Management Accounts, representing over 68.4 per cent 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. Notwithstanding, this performance demonstrates the capacity of the Bank to generate surplus in its operations,” stated Mr Osidi.

Total operating income grew by over 30 per cent. The growth was driven by improved interest income, fee income and other incomes.

FMBN’s asset base expanded by over 27 per cent. This reflected increased housing finance activities and better asset management.

The bank recovered about ₦19 billion in wrongful deductions from its accounts made by the Office of the Accountant General of the Federation. This recovery strengthened its liquidity position.

Despite the strong financial performance, the managing director acknowledged that the bank remained grossly undercapitalised. Its paid-up capital stands at approximately ₦2.56 billion.

To address this, FMBN is pursuing a recapitalisation drive targeting up to ₦750 billion.

Engagements approved by the Federal Executive Council are ongoing with the Ministry of Finance, the Central Bank of Nigeria, the Ministry of Finance Incorporated and the Bureau of Public Enterprises.

Although the process has progressed slowly, the bank remains confident it will yield transformative outcomes for the bank and the housing sector.

A major milestone in 2025 was the full deployment of the bank’s Core Banking Application. The system had stalled for years under the previous administration.

The new system has significantly improved transaction processing, transparency, data integrity and service turnaround time.

The bank also onboarded an Electronic Visitor Management System to enhance the customer experience. This positions FMBN for a more technology-driven, customer-centric future.

On governance, Mr Osidi said the bank inherited six years of unapproved audited accounts (2018–2023). Within one year, accounts for 2018-2021 were approved.

The 2022 accounts have been submitted to the CBN for approval. The 2023 audit is nearing completion.

Management pledged to clear all outstanding audit backlogs and ensure the bank is up to date before the end of 2026.

To tackle legacy non-performing loans, FMBN constituted dedicated loan recovery task teams nationwide. In 2025 alone, the bank recovered over ₦16.1 billion in delinquent loans.

This adds to ₦11.2 billion recovered in 2024. Total recoveries in the last two years amount to approximately ₦27.3 billion.

These results reflect tighter credit controls and improved recovery strategies.

In line with its financial inclusion mandate, the bank rolled out several new products targeted at the informal sector. These aim to expand access to affordable housing finance across all segments of Nigerian society.

Looking ahead, FMBN’s 2026 strategy will prioritise recapitalisation, the reduction of non-performing loans, and digital transformation towards a paperless environment.