The government has introduced the Federal Loan Financial institution of Nigeria’s (FMBN) non-interest loan product, Ijarah Muntahia Bittamleek Rent-to-Personal, in Kano, pledging that no Nigerian must have to choose from homeownership and deeply held monetary convictions.
The product was once officially introduced on Tuesday via the Minister of Housing and City Building, Dr. Muttaqhah Darma, along the Managing Director of FMBN, Shehu Osidi.
Underneath the association, an eligible Nigerian occupies a house via a hire settlement, makes agreed apartment bills over an outlined length and turns into the landlord on the finish of the time period.
Each audio system described the product as asset-backed, clear, regulated and open to each and every eligible contributor to the Nationwide Housing Fund (NHF), regardless of faith.
Darma mentioned greater than six million Nigerians give a contribution to the NHF, but FMBN has traditionally booked fewer than 500 particular person mortgages yearly, with many members staying clear of interest-bearing loans.
“The ones Nigerians have contributed and they’ve aspirations. From these days they’ve a reputable pathway,” he mentioned.
The release marks the primary public product beneath the Nationwide Loan Trade Coverage issued in July 2026. The coverage directs FMBN to disburse a minimum of 40 in line with cent of every 12 months’s NHF collections as mortgages, carry its mortgage ceiling from N50 million to N85 million, come to a decision programs inside of 30 operating days via an eight-document procedure, e-book 2,000 mortgages this 12 months and 5,000 yearly via 2028, and submit loan information quarterly.
The FMBN Managing Director mentioned the initiative was once no longer designed for one non secular neighborhood or one a part of the rustic, however presented an extra choice compliant with moral finance rules. He cited international Islamic finance property of $5.98 trillion in 2024 and Nigeria’s Islamic finance business, valued at over N4.4 trillion in 2024, up from N2.5 trillion in 2023, as proof of a considerable alternative to deepen inclusion in housing finance.
Each leaders mentioned Kano was once intentionally selected as the industrial center of northern Nigeria, with sturdy call for for inexpensive housing and moral finance, however stressed out that it was once handiest the start line.
The product will likely be rolled out to Lagos, Port Harcourt, Enugu, Ibadan, Maiduguri, Sokoto, Abuja and different towns. In the meantime, NHF club is focused to develop from six million to ten million via 2028 via business unions, cooperatives, employers and a brand new diaspora window that may settle for foreign-currency contributions.
To exhibit its dedication to supply, FMBN has designated its housing challenge in Bichi, Kano State, advanced via AYAB Nig. Ltd., for pilot implementation. Keys will likely be passed over to the primary beneficiaries straight away after the release rite in Bichi.
On shopper coverage, Darma introduced a Loan Shopper Constitution that may spell out what each and every buyer will pay and the way possession is attained, in addition to the function of the Place of work of the Loan Trade Regulatory.
He additional defined that the federal government, along with 19 states and 8 skilled our bodies, had validated a countrywide housing deficit of 15 million devices. He mentioned an offer have been submitted to President Bola Ahmed Tinubu to convey all federal housing, loan and comparable establishments beneath one ministry.
The proposal is meant to be sure that NHF collections, Loan Refinance and Funding Fund (MREIF) refinancing, Federal Housing Authority building and Circle of relatives Houses Finances investments perform as a coordinated supply gadget to finance properties beneath the Tinubu Mass Social Housing Scheme in each and every native executive house (LGA).
Ahmad Sorondinki
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