News Agency of Nigeria
Loans recovery: FMBN rakes in N18.9bn in 2024
Metro

Loans recovery: FMBN rakes in N18.9bn in 2024

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By Angela Atabo

Mr Shehu Osidi, the Managing Director and Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), said the bank raked in N18.9 billion in 2024 from recovery of bad loans.

Osidi made this known on FMBN Day at the ongoing Africa International Housing Show (AIHS) on Thursday in Abuja.

The News Agency of Nigeria (NAN) reports that the theme for the Housing Show is, “Re-imagining Housing Finance: Opportunities and Lessons for FMBN”.

Osidi recalled that, at the same event  in 2024, the bank announced the constitution of seven recovery task teams to recover delinquent loans across the country’s geo-political zones.

“By the end of 2024, the teams had raked in over N10.9 billion in bad loans.

“This was in addition to our normal recovery activities which also yielded the sum of N3.1b in the same year.

“The recovery from the teams is currently at over N18.9bn,’’ he said.

Osidi said that the bank also improved its loan approvals significantly within the same period.

According to him, a total sum of N71.5 billion in loans has been approved, compared to N39.7 billion in 2023.

He added that under the National Housing Fund (NHF) operations, the bank’s collections grew by three billion naira in 2024 resulting in a total collection of N103 billion.

Osidi said this was compared to the N100 billion the bank recorded in 2023.

“Notably, we were also able to clear a four-year backlog out of our outstanding unaudited accounts of 2018, 2019, 2020 and 2021, demonstrating our renewed commitment to financial transparency and good governance.

“I believe by the time we come to this platform next year, FMBN should have been up to date in its audited accounts.

“Our target is to achieve this milestone by the end of this year 2025,” he said.

Osidi said that FMBN’s financial performance has also improved; adding that the bank made an operational surplus of N11.5 billion, making it the first time it recorded such achievement in over 30 years of existence.

He said that with prudent management and growing operations, FMBN was on track for another surplus in 2025.

According to him, this is proof that FMBN’s policies are yielding results, and the bank is on the right track.

The Managing Director said FMBN was offering deliberate and substantial support for the Ministry of Housing on its housing delivery agenda under the Renewed Hope Housing programme of President Bola Tinubu.

He said that the bank has so far provided N100 billion off-taker guarantee to facilitate the mobilisation of required funding for the Renewed Hope Housing and Estates programme across Nigeria.

Osidi explained that those projects were currently ongoing in Abuja, Kano, Lagos and other locations across the country.

He further said that FMBN has also extended an additional funding facility of N19.9 billion for the Karsana project in Abuja.

“This is apart from our funding of Renewed Hope City, Ibeju Lekki Lagos to the tune of N27 billion to deliver 1,500 units of two and three bedroom apartments.

“The Bank is also providing mortgages for Nigerians who are contributors to the NHF to off-take the houses constructed under the programme across the country,’’ he said.

Osidi said that the bank is also introducing new products to deepen affordable home ownership and promote financial inclusion.

He disclosed that, starting from August, three ground-breaking products will be rolled out.

These includes: The FMBN Non-Interest Mortgage Loan, which aligns with ethical finance principles to cater for the needs of Nigerians who prefer non-interest banking models.

The second is, FMBN National Housing Fund (NHF) Diaspora Mortgage Loan, specifically designed to provide a safe and seamless homeownership pathway for Nigerians living abroad, to be launched on Aug. 31.

Osidi said the FMBN National Housing Fund (NHF) Diaspora Mortgage Loan is in collaboration with NiDCOM and the Central Bank of Nigeria.

He said the third product is Rent Assistance, a customised product tailored to meet the immediate needs of NHF contributors in both formal and informal sectors before they own their homes.(NAN)

Edited by Dorcas Jonah/Rotimi Ijikanmi

NELFUND to disburse N90bn in tuition, stipends- MD
General News

NELFUND to disburse N90bn in tuition, stipends- MD

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By EricJames Ochigbo

The Managing Director of the Nigerian Education Loan Fund (NELFUND), Mr Akintunde Sawyerr, has announced the fund’s commitment to disbursing 90 billion naira for student’s tuition and stipends.

Sawyerr said this at a meeting with the House of Representatives Committee on Student Loans, Scholarships, and Higher Education Financing on Wednesday in Abuja.

He noted that the fund has received over 350,000 applications and has so far disbursed more than N10 billion.

According to him, the fund is inclusive, ensuring that every Nigerian, regardless of location or background, has access to the education they deserve.

Sawyerr emphasised that NELFUND is an institution designed to provide relief, particularly in these challenging economic times, aligning with President Bola Tinubu’s Renewed Hope Agenda.

He stated that the fund offers not just immediate palliative relief but a long-term solution aimed at fostering stability and growth in Nigeria.

“Applications are coming in at an average of over 1,000 per day, and we are making special provisions for students with disabilities.

“We are also focused on addressing barriers to girl-child education, recognising that denying girls the opportunity for further education denies the nation the chance to benefit from their leadership potential.

“With 70 per cent of our population under the age of 35, failing to provide education for this segment exposes Nigeria to a future fraught with instability and violence, this intervention by President Tinubu could not have come at a better time”.

Sawyerr further stated that deliberate efforts are being made to proactively reach out to regions that feel left behind, particularly the South East.

He noted that following multiple rounds of sensitisation in local communities, there has been significant progress with a surge in applications.

He reiterated NELFUND’s commitment to working closely with the committee to achieve its goals.

“This collaboration is crucial in shaping a student loan system that truly serves the interests of all Nigerians.

“As we continue to work together, let us remember that our collective goal is the betterment of Nigeria and its youth.

“By ensuring education remains accessible and equitable, we are securing the future of millions of young Nigerians and building a stronger, more prosperous nation”.

In his remarks, the Chairman of the Committee, Rep. Gboyega Isiaka (APC-Oyo), described NELFUND as a critical agency.

He noted that the fund is about creating a future where every Nigerian youth has the opportunity to realise their potential and contribute to national development.

Isiaka expressed concerns about the management’s capacity to handle the fund, given its potential.

“As we proceed with proper oversight of this institution, we will focus on several key issues. For instance, we need to be able to ask ourselves: Where will NELFUND be in the next three to five years?

“How will it achieve its goals, and what challenges need to be addressed to get there?” he said.

Isiaka reaffirmed the committee’s commitment to ensuring accountability and transparency, pledging to work within the law to meet the aspirations of Nigerians, especially the youth. (NAN) www.nannews.ng

Edited by Tosin Kolade

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