By Mashe Umaru Gwamna
The Managing Director/Chief Executive of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, has identified undercapitalisation as the biggest challenge threatening housing delivery targets in Nigeria.
Speaking in Abuja, Osidi said the Bank’s ability to scale impact has been significantly constrained by its current capital base of about N2.56 billion.
He, however, noted that efforts to address the challenge are ongoing, with a recapitalisation drive targeting up to N750 billion already underway.
“We are optimistic that this target will be achieved. Efforts are in progress to overcome this challenge. While progress may be gradual, we are confident of success,” he said.
Osidi highlighted key achievements recorded under the current management, noting that in 2025 alone, FMBN financed 6,911 housing units, up from 2,165 units in 2024, representing over 300 per cent growth. Project loan disbursements also rose from N31.5 billion to over N79 billion, reflecting improved capacity to fund large-scale housing developments.
On resource mobilisation, he said National Housing Fund (NHF) collections increased from N100 billion in 2023 to N103 billion in 2024, and further to a record N152.4 billion in 2025—representing over 48 per cent year-on-year growth and the highest in the scheme’s history.
He added that the Bank expanded its contributor base by more than 300,000 within two years, an indication of renewed public confidence.
The FMBN boss also disclosed that access to mortgage finance has improved across all product lines. Individual NHF mortgage disbursements rose to N8.2 billion in 2025, representing a 38 per cent increase, while Rent-to-Own financing reached N7.1 billion.
Home Renovation Loans, he said, grew to N13.8 billion, benefiting over 15,000 Nigerians—an 86 per cent increase year-on-year.
From a financial sustainability standpoint, Osidi said the Bank has recorded a historic turnaround.
“We moved from a negligible surplus position in 2023 to N11.58 billion in 2024—our first operational surplus in over 30 years—and further to N19.5 billion in 2025, representing a 68.4 per cent increase,” he said.
He added that total operating income grew by over 30 per cent, while the Bank’s asset base expanded by more than 27 per cent.
On asset quality and liquidity, Osidi said the Bank recovered over N27.3 billion in delinquent loans within two years and secured refunds of about N19 billion from wrongful deductions.
Operationally, he noted that the Bank has been modernised, with the full deployment of a Core Banking Application improving service delivery, transparency, and turnaround time. He also said a six-year backlog of audited accounts has been cleared, restoring governance and institutional credibility.
Osidi further disclosed that NHF refunds increased from N13.2 billion in 2023 to N15.6 billion in 2025, with beneficiaries rising to over 55,000—an indication of faster processing and improved efficiency.
He stated that FMBN has also been repositioned as a key driver of the Federal Government’s Renewed Hope Housing Programme, committing over N100 billion in off-taker guarantees and direct funding for major housing projects nationwide.
According to him, the Bank’s recent performance reflects a broader transformation.
“FMBN today is stronger, more efficient, financially viable, and delivering real impact at scale. We are poised to do even more in the year ahead,” he said.
Osidi urged Nigerians to begin to see housing as an achievable goal rather than a lifelong struggle, noting that the transition is already underway.
“With sustained reforms, increased housing supply, and improved financing mechanisms, homeownership will become more attainable. Our commitment is to accelerate this transition and ensure that, for more Nigerians, owning a home becomes a realistic goal rather than a distant dream,” he added.
