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Federal Mortgage Bank recapitalisation efforts are advancing as the Federal Mortgage Bank of Nigeria (FMBN) moves to raise its capital base to N750 billion. The initiative aims to expand housing finance access, strengthen mortgage funding, and address Nigeria’s growing housing deficit.
The Managing Director and Chief Executive Officer, Shehu Osidi, disclosed the development while addressing journalists during a briefing marking his two years in office. He explained that the Federal Mortgage Bank recapitalisation strategy will improve the institution’s ability to provide affordable housing finance nationwide.
Federal Mortgage Bank recapitalisation to strengthen capital base
The Federal Mortgage Bank recapitalisation plan focuses on increasing the bank’s paid up capital, which currently stands at about N2.56 billion. According to the bank’s leadership, this level of funding remains insufficient to effectively address Nigeria’s housing challenges.
Osidi stated that the institution remains undercapitalised and requires urgent financial restructuring to perform its mandate effectively. The Federal Mortgage Bank recapitalisation drive therefore seeks to expand the bank’s capital to N750 billion.
The initiative has received approval from the Federal Executive Council, with engagements ongoing with the Central Bank of Nigeria, Ministry of Finance Incorporated, and Bureau of Public Enterprises.
Although the process has progressed gradually, the bank expressed confidence that the Federal Mortgage Bank recapitalisation will deliver long term improvements for the housing sector.
Federal Mortgage Bank recapitalisation supports digital transformation
Alongside the Federal Mortgage Bank recapitalisation process, the bank reported progress in operational reforms, including the full deployment of its Core Banking Application.
The system has improved transaction processing, enhanced transparency, strengthened data integrity, and reduced turnaround time for services. Customers can now access registration and remittance services through digital platforms and USSD channels.
The bank also introduced an Electronic Visitor Management System to improve service delivery and customer experience. These digital upgrades support the Federal Mortgage Bank recapitalisation strategy by improving efficiency and positioning the institution as a technology driven housing finance provider.
Federal Mortgage Bank recapitalisation target raised to N750bn
The current Federal Mortgage Bank recapitalisation target represents an upward revision from the N500 billion goal announced in 2025. Management had previously expressed optimism that the earlier target would be achieved through collaboration with government stakeholders.
While the earlier plan has not yet been completed, operational improvements and system upgrades have strengthened the bank’s performance. The revised Federal Mortgage Bank recapitalisation target reflects the scale of funding required to meet Nigeria’s housing finance needs.
Federal Mortgage Bank recapitalisation backed by strong financial performance
The bank reported significant financial growth in recent years. It recorded a net operating surplus of N19.5 billion for the 2025 financial year, representing over 68 percent year on year growth.
This followed an operational surplus of N11.58 billion in 2024, described as the institution’s first surplus in more than 30 years. Total operating income also increased by more than 30 percent, driven by higher interest income, fees, and other revenue sources.
The bank’s asset base expanded by over 27 percent, reflecting increased housing finance activities and improved asset management practices. These improvements strengthen the Federal Mortgage Bank recapitalisation drive by enhancing financial stability.
Loan recoveries boost Federal Mortgage Bank recapitalisation strategy
FMBN also strengthened its financial position through recovery efforts. The bank recovered about N19 billion in wrongful deductions from its accounts by the Office of the Accountant General of the Federation.
To address non performing loans, the institution created recovery teams nationwide. These teams recovered over N16.1 billion in delinquent loans in 2025 and N11.2 billion in 2024, bringing total recoveries within two years to about N27.3 billion.
The recovery efforts have improved liquidity and reinforced the Federal Mortgage Bank recapitalisation process.
Federal Mortgage Bank recapitalisation and 2026 housing strategy
Looking ahead, the bank plans to prioritise Federal Mortgage Bank recapitalisation, reduce non performing loans, and expand digital transformation toward a paperless system in 2026.
The bank also called for a review of the Federal Mortgage Bank of Nigeria and National Housing Fund Acts. According to management, legal reforms are necessary to address funding challenges and strengthen mortgage financing.
The Federal Mortgage Bank recapitalisation initiative is expected to improve access to affordable housing, increase mortgage availability, and strengthen Nigeria’s housing finance sector. If successfully implemented, the plan could support long term housing development and expand homeownership opportunities across the country.
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