The Federal Mortgage Bank of Nigeria reported a net operational surplus of ₦19.5 billion for the 2025 fiscal year.

This figure shows a year-over-year increase of over 68.4%.

The statement was made on Wednesday in Abuja by FMBN's CEO, Shehu Osidi. He explained the turnaround as the result of careful reforms.

Mr Osidi added that the bank has consistently earned surpluses since the current administration took office. This is a big change from 2023, when only ₦226,000 was recorded as a surplus in management accounts before the new administration took control.

"In 2024, the Bank achieved its first operational surplus in over 30 years, totalling ₦11.58 billion. In 2025, our Management Accounts reported a net operational surplus of over ₦19.5 billion, reflecting a year-on-year increase of over 68.4%.

"It should be noted, however, that when impairment is applied following the external audit, this amount may decrease dramatically. Nonetheless, this result illustrates the Bank's ability to produce excess in its operations," said Mr Osidi.

Total operational income increased by more than 30 percent. The increase was driven by higher interest revenue, fee income, and other incomes.

FMBN's asset base grew by more than 27 percent.

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 implemented an Electronic Visitor Management System to improve the customer experience. This sets FMBN for a more technologically advanced, customer-centric future.

Regarding governance, Mr Osidi stated that the bank inherited six years of unapproved audited accounting (2018-2023). The 2018-2021 accounts were authorised within a year.

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

Management agreed to remove all outstanding audit backlogs and bring the bank up to date by the end of 2026.

To handle historical non-performing loans, FMBN formed dedicated loan recovery task teams around the country. In 2025, the bank reclaimed more than ₦16.1 billion in overdue debt.

This adds up to ₦11.2 billion recovered in 2024. Over the last two years, recoveries totalled around ₦27.3 billion.

These findings indicate tighter credit regulations and enhanced recovery strategies.

In keeping with its financial inclusion goal, the bank introduced many new products aimed at the informal sector. These initiatives seek to increase access to affordable home finance for all segments of Nigerian society.

Looking ahead, FMBN's 2026 strategy will focus recapitalisation, non-performing loan reduction, and digital transformation to a paperless environment.