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Sunday Ehigiator

The Federal Mortgage Bank of Nigeria (FMBN), has revealed that it recorded a total of N11.58 billion in operational surplus in 2024. This is as it said it aims to recapitalise with at least N500 billion, and expand its reach beyond state capitals to other commercially viable locations across various states in Nigeria in 2025.

This was revealed through a statement signed by the Bank’s Managing Director/Chief Executive, Shehu Usman Osidi, in commemoration of his one year anniversary in office.

According to him, “In the past year, through our strategic focus on revenue growth, prudent financial management and cost-efficiency measures, we reduced operational expenses while maintaining service excellence. There was improved discipline across the organization, leading to better utilization of resources.

“These efforts have resulted in an operational surplus of N11.58 billion from our Management Accounts for 2024. This is the first such experience since FMBN came into existence over 30 years ago.

“Although this figure is expected to come down significantly when impairment is applied, we have set out to tackle frontally all aspects of our operations that lead to high impairment on our results, especially in tackling the high non-performing loans inherited by the current Management, and pursuing with great efforts the recapitalization of the Bank. A grossly inadequate capital of N2.5b hinders the capacity of the Bank to perform optimally.”

Speaking on the Bank’s target for 2025, he noted that, “In 2025, Management intends to seek the cooperation of stakeholders as directed by FEC for necessary action towards attaining the recapitalisation target of the Bank to the tune of the minimum of N500 billion. This is critical and central to the effective delivery of our mandate. We also aim to increase the branch network to facilitate extensive mobilisation of the informal sector, enhance financial inclusion and promote effective and more efficient service delivery.”

“In this regard, rather than continue with the present structure where the Bank’s branches are located in only State capitals, we will identify commercially viable locations with strong informal sector presence and open new branches in those locations to bring our services closer to the people,” he said.