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 its civil servants 25 years after it opted out.
The agreement was signed 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 of FMBN, who signed for the bank.
Osidi assured the state government of the commitment of the bank to ensure that the state’s workforce reaps the full benefits of the scheme which he highlighted.
He recalled that the FMBN had financed 10 housing projects in Kano with funding of over N6.8 billion, most of which have been completed and delivered.
The bank chief said the event marked a “significant milestone in our collective quest to provide sustainable and affordable homeownership opportunities to Nigerian workers particularly here 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 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. including: NHF Mortgage Loans at single-digit interest rates for home ownership; Individual Construction Loans that allows individuals to build their houses directly; Home Renovation Loans to improve existing houses; Cooperative Housing Development Loans that allows members of cooperatives 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 now being processed timely,” he stated.
The head of service, Abdullahi Musa, lamented over the far-reaching effects of the earlier withdrawal from the National Housing Scheme that denied the workers of 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 wellbeing of our dedicated civil servants.
“It is pertinent to know that Kano State was an active participant 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.
He described the housing scheme as a fundamental component of workers; welfare, adding that access to decent and affordable accommodation directly impacts productivity, financial security and the overall wellbeing of the worker.
Musa described this as necessary to attain the state government’s plan to enhance the welfare of the civil servants.
