…Records N11.58bn Operational Surplus in 2024

By John Alechenu

ABUJA: The Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, has joined calls for owners of vacant houses in Abuja to be taxed, arguing that such a measure could help fund affordable housing for low and middle-income earners.

Speaking at a media briefing on Wednesday to mark his first year in office, Osidi emphasized the need to bridge Nigeria’s housing deficit by ensuring that underutilized properties contribute to the sector’s development.

“Empty houses in Abuja should be taxed. We at the Federal Mortgage Bank of Nigeria are focused on financing affordable housing for low and medium-income earners.

If these houses are taxed, it could encourage more investment in affordable housing, because most of the empty houses in Abuja are not accessible to our target customers.

In Nigeria, we have houses we don’t need and need houses we don’t have,” he stated.

Providing a breakdown of the bank’s financial performance over the past year, Osidi revealed that FMBN recorded a significant operational surplus of N11.58 billion in 2024, marking the first time in over 30 years that the institution has achieved such a milestone.

He attributed this success to strategic revenue growth, prudent financial management, and cost-cutting measures. However, he acknowledged that impairments would affect the final surplus figure, noting that his team is working to address inefficiencies that have previously led to high impairments.

Osidi also highlighted improvements in National Housing Fund (NHF) collections, stating that total contributions grew to N103 billion in 2024, a N3 billion increase from 2023’s N100 billion.

“This increase in NHF collections demonstrates renewed trust and participation in the scheme by Nigerian workers,” he noted.

Key figures from 2024 include: 658 employer organizations and 178,619 employees registered, compared to 556 employers and 113,577 employees in 2023.

The return of Kano State’s civil servants to the NHF scheme after a 24-year absence, following an agreement signed on January 1, 2025. This is expected to significantly boost NHF contributions in 2025, as Kano State has over 160,000 civil servants.

Under FMBN’s loan operations, a total of N71.5 billion was approved in 2024, compared to N39.75 billion in 2023. Additionally, in refund operations, N14.4 billion was refunded to 44,333 beneficiaries, up from N13.2 billion refunded to 40,426 beneficiaries in 2023.

Osidi also outlined plans to address high non-performing loans (NPLs) inherited by the current administration while intensifying efforts to recapitalize the bank.

“We are committed to tackling the issue of high non-performing loans and pursuing recapitalization with renewed vigor to strengthen the bank’s financial position,” he assured.

The FMBN’s latest achievements signal a new phase of stability and growth, with a clear focus on affordable housing, financial prudence, and sustainable development in Nigeria’s real estate sector.