The Federal Loan Financial institution of Nigeria (FMBN) has introduced a lease-to-own housing finance scheme to provide eligible Nationwide Housing Fund (NHF) individuals an alternate path to homeownership.
The financial institution disclosed this in a observation issued by way of its Staff Head of Company Communications, Joe Abuku, following the release of the non-interest loan product in Kano State on Tuesday, October 27, 2026.
Referred to as Ijarah Muntahia Bittamleek, the scheme lets in beneficiaries to occupy properties thru a rent association ahead of possession is transferred, matter to agreed phrases and the fulfilment of contractual tasks.
FMBN launches lease-to-own loan scheme
FMBN Managing Director and Leader Government, Shehu Usman Osidi, stated the non-interest loan product was once advanced to deal with eligible NHF individuals in quest of a substitute for standard interest-based loan financing.
The initiative is meant to make bigger housing finance choices, deepen monetary inclusion and make homeownership extra available to Nigerians with other housing wishes. Osidi additionally stressed out that the scheme was once no longer limited to any spiritual crew or geographical location however was once open to eligible NHF individuals around the nation.
The financial institution stated in its observation:
- “The Federal Loan Financial institution of Nigeria (FMBN) has introduced its Non-Hobby Loan Product, Ijarah Muntahia Bittamleek (Rent-to-Personal), to make bigger get entry to to housing finance and supply eligible individuals to the Nationwide Housing Fund (NHF) Scheme with an alternate pathway to homeownership,” the observation learn partly.
- On the release, the Minister of Housing and City Construction, Muttaqha Rabe Darma, steered the financial institution to make the product simple to get entry to, with easy utility procedures, quicker processing and clear transactions.
He stated the scheme’s luck will have to be measured by way of the choice of Nigerians who sooner or later change into householders, fairly than the release itself. Darma also known as on FMBN to increase the initiative past Kano to Lagos, Port Harcourt, Enugu, Ibadan, Maiduguri, Sokoto and Abuja.
FMBN palms over first lease-to-own properties in Kano
As a part of the release, FMBN commissioned the FMBN-Ijarah-01 Property in Bichi, Kano State, and passed over keys to the primary beneficiaries below the pilot undertaking.
Advanced by way of AYAB Development Corporate, the property contains two- and three-bedroom bungalows supported by way of infrastructure and very important amenities.
Darma commissioned the property and offered the keys to beneficiaries, describing the advance for instance of the want to translate housing insurance policies into finished properties that Nigerians can occupy.
The pilot property options two- and three-bedroom bungalows.
The minister steered informal-sector staff, marketplace investors, artisans and shipping staff to check in with the NHF Scheme and make common contributions to qualify for housing finance alternatives.
Kano State Governor Abba Kabir Yusuf, represented by way of the state’s Commissioner for Housing, Ibrahim Yakubu Adamu, described the release as a milestone for the rustic’s housing finance sector and pledged the state govt’s strengthen for FMBN’s housing supply efforts.
The financial institution’s observation didn’t specify the lease-to-own product’s financing prices, compensation length, belongings costs, eligibility thresholds or the choice of beneficiaries lined by way of the pilot.
FMBN authorized N208 billion in housing loans
The brand new product follows FMBN’s broader efforts to make bigger housing finance. Nairametrics previous reported that the financial institution authorized greater than N208 billion in housing and loan loans in 2025, whilst disbursements exceeded N120 billion for housing building, loan financing, house renovation and different housing-related tasks.
Osidi disclosed the figures on October 19, 2026, all through the commemoration of International Habitat Day and International Towns Day in Abuja. He stated the financial institution financed 6,911 inexpensive housing devices in 2025, reaching roughly 96% of its annual goal of seven,200 devices below the Presidential and Ministerial Deliverables.
The figures supply context for the financial institution’s newest product release because it seeks to provide eligible individuals extra tactics to finance homeownership.
FMBN expands housing finance choices
The lease-to-own scheme follows FMBN’s launch of the Diaspora National Housing Fund Mortgage Loan in London on August 7, 2026. That product was once offered to assist eligible Nigerians dwelling in another country finance residential belongings purchases in Nigeria.
Below the diaspora loan scheme, eligible individuals can get entry to loans of as much as N100 million at an annual rate of interest of 9%, with a most compensation duration of 10 years. Candidates can whole registration and Know Your Buyer necessities electronically and make the specified contributions remotely, matter to the financial institution’s eligibility and affordability tests.
Sooner than the release of the non-interest loan product, Osidi had additionally introduced plans to introduce the scheme and a hire help programme for federal civil servants ahead of the tip of October 2026.
The lease-to-own product has now been introduced, including an alternative choice for eligible NHF individuals. Its succeed in depends upon the scheme’s phrases, affordability and implementation, in addition to FMBN’s skill to increase get entry to past the preliminary pilot property in Kano.