The Kano State government has signed a Memorandum of Agreement (MOA) with the Federal Mortgage Bank of Nigeria (FMBN) to resume participation in the National Housing Fund (NHF) Contribution scheme for civil servants in the state, marking a return after 25 years of opting out.
It is important to note that Kano State was an active participant in the National Housing Scheme until its exit in 2000.
The state Head of Service, Abdullahi Musa, signed the MOA on behalf of the Kano State government, while Shehu Usman Osidi, the Managing Director and Chief Executive of FMBN, signed on behalf of the bank.
During the signing ceremony, the Managing Director reassured the Kano State government of the bank’s commitment to ensuring that the state’s workforce fully benefits from the scheme. He also highlighted these benefits.
Additionally, he noted that the FMBN has financed ten housing projects in Kano State, investing over N6.8 billion, most of which have been completed and delivered.
“Distinguished ladies and gentlemen, this event marks a significant milestone in our collective quest to provide sustainable and affordable homeownership opportunities to Nigerian workers particularly here in Kano State.
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He disclosed that “The decision of the Kano State Government to return to the NHF scheme after more than two decades is not only historic but also a testament to the government’s renewed commitment to improving the living standards of its workforce.
“Since 2000, the state’s non-participation has meant that thousands of civil servants in Kano State have been unable to access affordable housing loans under the NHF.
“Today, that era comes to an end, and a new chapter of possibilities begins.
Through this agreement, Kano State workers will now be eligible to enjoy the various housing finance products offered by FMBN.
These include: NHF Mortgage Loans at single-digit interest rates for home ownership, Individual Construction Loans that allow individuals to build their houses directly, Home Renovation Loans to improve existing houses, Cooperative Housing Development Loans that allow members of cooperative societies to own their homes, Rent-to-Own Schemes that allow workers to gradually own their homes while paying rent Non-Interest Mortgage Products that meet ethical standards and Other innovative housing solutions tailored to meet their needs.
“I want to assure the Kano State Government represented by the Head of Service, and all stakeholders present here particularly our esteemed labour leaders that FMBN is fully committed to ensuring that the State’s workforce reaps the full benefits of this scheme.
“Our bank has undergone significant reforms, and we now operate with enhanced efficiency, transparency, and digitalized processes to make access to housing finance easier and faster. Refunds to retired contributors are also now being processed timely” he stated.
The Head of Service, Abdullahi Musa, while speaking at the occasion, lamented over the far-reaching effects of the earlier withdrawal from the National Housing Scheme that denied the workers of various financial opportunities.
“This initiative supports our unwavering commitment of enhancing the welfare and well-being of our dedicated civil servants.”
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