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The Federal Mortgage Bank of Nigeria (FMBN) has launched a lease-to-own housing finance scheme to give eligible National Housing Fund (NHF) contributors an alternative route to homeownership.
The bank disclosed this in a statement issued by its Group Head of Corporate Communications, Joe Abuku, following the launch of the non-interest mortgage product in Kano State on Tuesday, October 27, 2026.
Known as Ijarah Muntahia Bittamleek, the scheme allows beneficiaries to occupy homes through a lease arrangement before ownership is transferred, subject to agreed terms and the fulfilment of contractual obligations.
FMBN launches lease-to-own mortgage scheme
FMBN Managing Director and Chief Executive, Shehu Usman Osidi, said the non-interest mortgage product was developed to accommodate eligible NHF contributors seeking an alternative to conventional interest-based mortgage financing.
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The initiative is intended to expand housing finance options, deepen financial inclusion and make homeownership more accessible to Nigerians with different housing needs. Osidi also stressed that the scheme was not restricted to any religious group or geographical location but was open to eligible NHF contributors across the country.
The bank said in its statement:
- “The Federal Mortgage Bank of Nigeria (FMBN) has launched its Non-Interest Mortgage Product, Ijarah Muntahia Bittamleek (Lease-to-Own), to expand access to housing finance and provide eligible contributors to the National Housing Fund (NHF) Scheme with an alternative pathway to homeownership,” the statement read in part.
- At the launch, the Minister of Housing and Urban Development, Muttaqha Rabe Darma, urged the bank to make the product easy to access, with simple application procedures, faster processing and transparent transactions.
He said the scheme’s success should be measured by the number of Nigerians who eventually become homeowners, rather than the launch itself. Darma also called on FMBN to extend the initiative beyond Kano to Lagos, Port Harcourt, Enugu, Ibadan, Maiduguri, Sokoto and Abuja.
FMBN hands over first lease-to-own homes in Kano
As part of the launch, FMBN commissioned the FMBN-Ijarah-01 Estate in Bichi, Kano State, and handed over keys to the first beneficiaries under the pilot project.
Developed by AYAB Construction Company, the estate comprises two- and three-bedroom bungalows supported by infrastructure and essential facilities.
Darma commissioned the estate and presented the keys to beneficiaries, describing the development as an example of the need to translate housing policies into completed homes that Nigerians can occupy.
The pilot estate features two- and three-bedroom bungalows.
The minister urged informal-sector workers, market traders, artisans and transport workers to register with the NHF Scheme and make regular contributions to qualify for housing finance opportunities.
Kano State Governor Abba Kabir Yusuf, represented by the state’s Commissioner for Housing, Ibrahim Yakubu Adamu, described the launch as a milestone for the country’s housing finance sector and pledged the state government’s support for FMBN’s housing delivery efforts.
The bank’s statement did not specify the lease-to-own product’s financing costs, repayment duration, property prices, eligibility thresholds or the number of beneficiaries covered by the pilot.
FMBN approved N208 billion in housing loans
The new product follows FMBN’s broader efforts to expand housing finance. Nairametrics earlier reported that the bank approved more than N208 billion in housing and mortgage loans in 2025, while disbursements exceeded N120 billion for housing construction, mortgage financing, home renovation and other housing-related initiatives.
Osidi disclosed the figures on October 19, 2026, during the commemoration of World Habitat Day and World Cities Day in Abuja. He said the bank financed 6,911 affordable housing units in 2025, achieving approximately 96% of its annual target of 7,200 units under the Presidential and Ministerial Deliverables.
- FMBN’s loan approvals rose from N71.5 billion in 2024 to more than N208 billion in 2025, representing growth of at least 191%.
- NHF collections reached N152.4 billion in 2025, up 48% from N103 billion in 2024, according to figures released by the bank in February 2026.
- The bank’s housing finance activities include construction finance, mortgage lending, home renovation and other housing-related initiatives.
The figures provide context for the bank’s latest product launch as it seeks to offer eligible contributors more ways to finance homeownership.
FMBN expands housing finance options
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 introduced to help eligible Nigerians living abroad finance residential property purchases in Nigeria.
Under the diaspora mortgage scheme, eligible contributors can access loans of up to N100 million at an annual interest rate of 9%, with a maximum repayment period of 10 years. Applicants can complete registration and Know Your Customer requirements electronically and make the required contributions remotely, subject to the bank’s eligibility and affordability assessments.
Before the launch of the non-interest mortgage product, Osidi had also announced plans to introduce the scheme and a rent assistance programme for federal civil servants before the end of October 2026.
The lease-to-own product has now been launched, adding another option for eligible NHF contributors. Its reach will depend on the scheme’s terms, affordability and implementation, as well as FMBN’s ability to extend access beyond the initial pilot estate in Kano.
