New Rival for Access, Zenith as CBN Licenses Fresh Commercial Bank to Begin Operations in 2026
- The Nigerian banking industry is set for another player as the Central Bank of Nigeria (CBN) has approved a new commercial bank’s operations
- The Federal Mortgage Bank of Nigeria (FMBN) announced that it has secured CBN approval to operate commercial banking services
- The development positions FMBN to compete in Nigeria’s virile banking sector amid CBN’s recapitalisation moves
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The Nigerian banking landscape is set for a shake-up as the Federal Mortgage Bank of Nigeria (FMBN) has confirmed it has secured approval from the Central Bank of Nigeria (CBN) to operate as a full-fledged commercial bank by 2026.
The transition positions FMBN to compete with established giants like Access Bank, Zenith Bank, and First Bank, expanding its operations beyond mortgage financing into mainstream commercial banking services.
Source: Twitter
N37 billion disbursed to thousands of Nigerians
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Announcing the development, FMBN’s Managing Director, Haayatudeen Atiku, revealed that the institution has already disbursed N37 billion to 3,427 Nigerians who are contributors to its National Housing Fund.
This, he said, underscores the bank’s commitment to supporting Nigerians in accessing affordable housing and financial empowerment.
He disclosed this during the commissioning of the bank’s new head office complex in Gwarimpa, Abuja.
The choice of location, he explained, was deliberate, as Gwarimpa is the largest housing estate in Africa with over 300,000 residents—an ideal hub for the bank’s expanding operations.
Two decades without Federal Allocation, yet thriving
According to a report by The Guardian, Atiku noted that the bank has not received funding from the Federation Account for over 20 years.
Despite this, FMBN has managed to remain a stable, high-integrity financial institution, operating prudently and innovatively to sustain its growth.
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“Although we have not received allocations for decades, we have established ourselves as one of the most efficiently managed government-owned institutions, with a strong record of integrity,” he said.
Plans for nationwide expansion
With its new CBN licence, FMBN is preparing to expand its state offices across Nigeria to provide wider access to banking and mortgage services. Atiku revealed that the bank has also been leveraging innovative platforms to facilitate mortgage access for thousands of Nigerians.
Through the Pension Commission (PENCOM) Retirement Savings Account (RSA) window, the bank has enabled over 6,000 Nigerians to secure mortgages within just two years.
Similarly, collaborations with Family Homes Funds (FHF) have allowed the bank to provide housing opportunities in several states, including Delta, Kano, Kaduna, Ogun, and Enugu.
Diversifying into new banking services
Looking beyond its traditional mortgage base, the bank is diversifying its income streams to include construction finance, partnerships with housing developers, and eco-friendly financial products.
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“The bank is set to commence facilitation of mortgage access through the MREIF windows while strengthening collaborations with partners to deliver affordable housing nationwide,” Atiku added.
By evolving into a commercial bank, FMBN hopes to create a stronger financial backbone for Nigerians, bridging the gap between housing finance and everyday banking needs.
What this means for Nigeria’s banking sector
The CBN’s approval of FMBN’s transition marks a significant shift in Nigeria’s financial services industry.
As a commercial bank, FMBN will not only rival long-established institutions but also introduce new competition in the market, potentially driving innovation and increasing access to affordable banking services for ordinary Nigerians.
Source: Twitter
With operations set to begin in 2026, all eyes will be on how the new player reshapes the dynamics of Nigeria’s highly competitive banking sector.
Banks release new interest rates on savings accounts
Legit.ng earlier reported that following the apex bank’s interest rate cut, commercial banks have begun aligning their interest rate products with the new MPR.
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Due to the development, banks have begun notifying their customers via email, announcing changes and adjustments to their interest rate products.
Union Bank disclosed in one of its emails that it has adjusted its interest rate to 8.1% per annum, effective Wednesday, October 1, 2025.
Source: Legit.ng
