FMBN’s record N152.4 billion NHF collection in 2025 signals a structural shift in Nigeria’s public housing finance architecture, driven by higher contributions, stronger recoveries, and expanded construction funding.
Nigeria’s public housing finance system is undergoing its most significant expansion in decades, with the Federal Mortgage Bank of Nigeria (FMBN) posting a historic N152.4 billion in National Housing Fund (NHF) collections in 2025 — the highest annual inflow since the scheme began.
The figure represents a 48% increase from the N103 billion generated in 2024, itself a record at the time. The acceleration points not only to stronger compliance and contributor mobilization, but also to renewed institutional confidence in the NHF framework.
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Managing Director and Chief Executive Officer, Shehu Osidi, announced the milestone on Wednesday in Abuja while marking his second year in office. He thanked President Bola Tinubu for the confidence reposed in him, stating that the bank’s performance demonstrates that the trust placed in his leadership “was not betrayed and would not be.”
Osidi said that upon assumption of office, the executive management anchored its reforms on four pillars — financial sustainability, customer impact, operational efficiency, and institutional renewal — structured under a 7-Point Agenda aimed at repositioning FMBN from a collection-focused institution to a more delivery-driven mortgage bank.
“I am proud to say that our stewardship in the last two years has seen renewed confidence in the National Housing Fund (NHF) Scheme. Before we came in, the highest annual collection ever made into the NHF was N100 billion, which was recorded in 2023.
“In 2024 when we came in, we took the collection to N103 billion. In the outgone year 2025, our NHF collections reached N152.4 billion, representing over 48% year-on-year growth and the highest annual collection in the history of the scheme,” he said.
Beyond the topline growth, contributor expansion provides further context. More than 139,000 new contributors were registered in 2025, following 178,619 in 2024 and 113,577 in 2023. Over the two-year period under the current management, well over 300,000 Nigerians were added to the scheme. This broadening of the contribution base improves the fund’s liquidity profile and strengthens its long-term sustainability, particularly in a system where inflows are directly linked to mortgage capacity.
Refund efficiency — often a pain point in contributory schemes — also improved. In 2023, before Osidi assumed office, N13.2 billion was refunded to 40,426 beneficiaries. That rose to N14.4 billion for 44,333 beneficiaries in 2024, and further to N15.6 billion benefiting 55,068 contributors in 2025. Faster processing times, according to management, were the result of digitalization and workflow reforms, measures intended to restore public trust in the scheme.
The collection surge coincides with a sharp increase in project financing and housing output. In 2025, FMBN financed 6,911 housing units, achieving 96% of its annual target across Cooperative Housing Development Loans, the Ministerial Pilot Housing Scheme, Affordable Housing initiatives, and Mega/Mini Cities under the Renewed Hope Housing Programme.
Project loan disbursements jumped to more than N79 billion in 2025, up from N31.5 billion in 2024. The scale of that increase suggests a deliberate shift toward construction-led intervention, rather than incremental mortgage expansion alone. Individual NHF mortgage disbursements also rose by 38% to N8.2 billion, compared to N5.9 billion in 2024.
The bank’s role in the Renewed Hope Housing Programme further underscores its evolving mandate. FMBN provided a N100 billion off-taker guarantee and direct funding support for key projects. In Lagos, N27 billion was allocated to the Ibeju-Lekki Renewed Hope City, with N8 billion already disbursed for 252 completed units. In Abuja, N19.9 billion was approved for the Karsana Renewed Hope City, with N17 billion used to construct 547 units plus 288 additional units, bringing the total output there to 864 units. Approvals have also been granted for projects in Enugu and other states.
“Equally significant is the value of our funding support for housing construction, which increased from N10 billion in 2024 to N48 billion in 2025, a positive variance of N38 billion that vividly demonstrates our strengthened capacity to mobilize resources at scale,” Osidi said.
On the institutional front, FMBN reported an operational surplus of N11.58 billion in its 2024 management accounts — its first in over 30 years. Loan approvals climbed to N71.5 billion in 2024 from N39.7 billion in 2023, reflecting improved underwriting and funding capacity.
Credit performance indicators show further strengthening. Loans totaling N9.45 billion were approved to Primary Mortgage Banks (PMBs) in 2025, slightly above the N9.099 billion recorded in 2024. More notably, repayment discipline improved significantly, with PMBs achieving 123% repayment performance in 2025 compared to 85% in 2024. The 38-percentage-point swing reflects more aggressive recovery frameworks and tighter credit monitoring.
The bank also recovered N18.9 billion in delinquent loans through seven recovery task teams deployed across Nigeria’s geo-political zones. In a system historically burdened by non-performing exposures, this recovery effort enhances balance sheet strength and supports further lending.
Subnational reintegration into the NHF scheme is another strategic development. Osidi disclosed that Oyo State approved the reintegration of its workers after 27 years outside the scheme, while Kano State, which exited in 2002, is close to full reintegration following a Memorandum of Agreement with the bank. Expanded state participation could materially boost collections and deepen the fund’s national footprint.
Still, structural constraints remain. Osidi acknowledged that FMBN’s single obligor limit restricts the scale of loans it can extend to PMBs, limiting expansion potential at a time when demand for affordable housing finance remains acute. He reiterated the need for recapitalization to unlock larger lending capacity and enable the bank to operate at a scale commensurate with Nigeria’s housing deficit.
Innovative products have also gained traction. Rent-to-Own loans saw N7.1 billion disbursed to 367 beneficiaries, while Home Renovation Loans reached N13.8 billion for 15,290 beneficiaries — an 86% increase over 2024. These products expand access beyond traditional mortgages and address incremental housing needs, particularly among lower- and middle-income earners.
Together, the 2025 figures point to a mortgage bank in transition — from a largely contributory custodian to a more active development finance institution. However, it is believed that the durability of this trajectory will depend on sustained contributor growth, recapitalization, disciplined credit management, and the bank’s ability to convert rising inflows into a scalable, affordable housing supply across the country.