The Federal Government has announced plans to seize mortgaged properties from retired civil servants who failed to fully repay housing loans obtained during their service.
The move was disclosed in a statement on Thursday by Mrs. Ngozi Obiechina, Head of Information and Public Relations at the Federal Government Staff Housing Loans Board (FGSHLB), quoting the Board’s Executive Secretary, Mrs. Salamatu Ahmed.
She said the initiative is part of efforts to recover outstanding loans and enforce mortgage terms.
Ahmed noted that the Board has begun compiling a list of defaulters, which will be forwarded to relevant agencies for recovery.
The decision follows a recent memo from the Office of the Head of the Civil Service, reminding workers that obtaining a Certificate of Non-Indebtedness from the FGSHLB and MDA Cooperatives is a condition for retirement.
She added that retirees who fail to settle their debts risk losing their mortgaged properties, as the Board is empowered to take legal action under Public Service Rule 021002 (p), which mandates loan clearance before exit from service.
“I am directed to bring to your attention the provision of Public Service Rule (PSR) 021002 (p), which mandates all public servants to obtain a Certificate of Non-Indebtedness as a prerequisite for retirement.”
“The Federal Government will commence the seizure of mortgaged properties belonging to retiring federal public servants who have failed to fully repay housing loans obtained from the board,” Ahmed said.
She noted that the directive also extends to already retired officers who remain indebted, advising them to regularise their loan status and obtain the necessary clearance certificate. She reaffirmed the Board’s commitment to enforcing compliance and pursuing loan recovery through appropriate legal and administrative channels.
What you should know
The Federal Government Staff Housing Loans Board (FGSHLB) was established to facilitate home ownership for federal civil servants through structured loan schemes. However, the board has continued to face challenges in recovering loans, particularly from retired beneficiaries.
- The latest enforcement effort reflects growing concern over the backlog of unpaid loans, which may affect the board’s ability to extend housing support to serving civil servants.
- Following the latest enforcement effort of the board, the requirement for a Certificate of Non-Indebtedness will be increasingly enforced across federal MDAs as part of broader efforts to promote fiscal responsibility and safeguard public resources.
The FGSHLB’s action highlights its renewed commitment to loan recovery, including from retired officers.
