FMBN launches non-interest lease-to-own housing scheme for NHF contributors
AI Executive Briefing
Gemini Flash AI~45s readThe Federal Mortgage Bank of Nigeria (FMBN) has launched a non-interest lease-to-own mortgage product to provide an alternative pathway to homeownership for NHF contributors. The pilot project was inaugurated in Kano State with the commissioning of the FMBN-Ijarah-01 Estate.
Context & Background
- ✦The scheme is part of a broader effort by the FMBN to expand housing finance options and deepen financial inclusion for Nigerians.
- ✦The initiative seeks to accommodate contributors who prefer non-interest financing over conventional interest-based mortgage products.
Key Figures & Named Entities
•Shehu Usman Osidi, FMBN Managing Director and Chief Executive, stated the product is open to all eligible NHF contributors regardless of religion or location.•Muttaqha Rabe Darma, Minister of Housing and Urban Development, urged for transparent, accessible application procedures and expansion to other major cities.
Outlook & Next Steps
The FMBN is expected to work on expanding the initiative beyond the pilot estate in Kano to other major cities including Lagos, Port Harcourt, Enugu, Ibadan, Maiduguri, Sokoto, and Abuja.
Key Takeaways
AI Summary- The Federal Mortgage Bank of Nigeria (FMBN) has introduced a non-interest lease-to-own housing scheme, 'Ijarah Muntahia Bittamleek', for National Housing Fund (NHF) contributors.
- The pilot phase was launched in Kano State with the commissioning of the FMBN-Ijarah-01 Estate, consisting of two- and three-bedroom bungalows.
- The initiative aims to provide an alternative to conventional interest-based mortgages, targeting a broad demographic including informal-sector workers and artisans.
Key Facts:2024-2025: FMBN loan approvals increased from N71.5 billion in 2024 to over N208 billion in 2025.October 27, 2026: The non-interest mortgage product was officially launched in Kano State.
Editorial Excerpt
The Federal Mortgage Bank of Nigeria (FMBN) has launched a lease-to-own housing finance scheme to give eligible National Housing Fund (NHF) contributors an alternative route to homeownership.
Frequently Asked Questions About This Story
What is the Ijarah Muntahia Bittamleek scheme?
It is a non-interest lease-to-own mortgage product that allows eligible NHF contributors to occupy homes under a lease arrangement before ownership is transferred.
Who is eligible to apply for this housing scheme?
The scheme is open to eligible National Housing Fund (NHF) contributors across Nigeria, including informal-sector workers, market traders, artisans, and transport workers.
