Kano State government has signed a Memorandum of Agreement (MoA) with the Federal Mortgage Bank of Nigeria (FMBN) to resume the National Housing Fund (NHF) contribution scheme for civil servants in the state after 23 years of opting out.
This MoA was signed on Friday at the office of the Kano State Head of Service (HOS), Abdullahi Musa, who represented the state government, and Shehu Usman Osidi, the managing director/ chief executive, FMBN, who signed on behalf of the bank.
He assured the state government of the bank’s commitment to ensuring that the state’s workforce reaps the full benefits of the scheme while he highlighted them.
He also recalled that the FMBN had financed 10 housing projects in Kano state with funding of 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 in Kano State.
“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 ends, 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, including 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 would enable 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 digitalised processes to make access to housing finance easier and faster. Refunds to retired contributors are also being processed timely,” he stated.
On his side, the Head of Service, Abdullahi Musa, lamented the far-reaching effects of the earlier withdrawal from the National Housing Scheme, which denied the workers various financial opportunities.
“I feel honoured to be part of this occasion of signing the Memorandum of Agreement between the Kano state government and the Federal Mortgage Bank of Nigeria.
“This initiative supports our unwavering commitment to enhancing the welfare and well-being of our dedicated civil servants.
“It is pertinent to know that Kano state actively participated in the National Housing Scheme until its exit in 2000.
“The decision to withdraw had far-reaching implications, particularly on the civil servants who were deprived of the available mortgage financing opportunities”, he stated.
However, he describes the housing scheme as a fundamental component of workers’ welfare, adding that access to decent and affordable accommodation directly affects productivity, financial security, and overall well-being of the worker.
He describes this as necessary to achieve the state government’s plan to enhance the welfare of state civil servants.
