FMBN Launches Non-Interest Mortgage Scheme, Hands Over First Homes in Kano
The Federal Mortgage Bank of Nigeria has introduced a lease-to-own mortgage option for National Housing Fund contributors, with the first beneficiaries receiving house keys in Kano.
The Federal Mortgage Bank of Nigeria (FMBN) has launched its first non-interest mortgage product, giving eligible National Housing Fund (NHF) contributors an alternative route to homeownership as the government seeks to expand access to housing finance.
The product, known as Ijarah Muntahia Bittamleek (Lease-to-Own), was formally launched by the Minister of Housing and Urban Development, Muttaqha Rabe Darma, on Tuesday, October 27, 2026, in Kano State.
The launch also featured the commissioning of the FMBN-Ijarah-01 Estate in Bichi, Kano, where keys were handed over to the first beneficiaries of the pilot scheme.
According to FMBN’s statement published on October 28, the initiative is designed for contributors who prefer an alternative to conventional interest-based mortgage financing.
Under the arrangement, beneficiaries occupy a property through a lease agreement and make agreed rental payments over a specified period. Ownership is subsequently transferred to them after they fulfil the contractual obligations.
FMBN Managing Director and Chief Executive, Shehu Usman Osidi, said the product was not restricted to Muslims or any particular geographical location, stressing that all eligible NHF contributors across Nigeria could access the financing option.
The pilot estate in Bichi was developed by AYAB Construction Company and comprises two- and three-bedroom bungalows supported by essential infrastructure and facilities.
Darma said the government expected FMBN to prioritise simplicity of application, faster processing, transparency and nationwide delivery in implementing the scheme.
He urged the bank to extend the product beyond Kano to Lagos, Port Harcourt, Enugu, Ibadan, Maiduguri, Sokoto and Abuja.
The launch also represents the first public product under the National Mortgage Industry Policy introduced in July 2026, which seeks to increase mortgage delivery and improve access to housing finance.
Under the policy targets reported by THISDAY on October 28, FMBN is expected to channel at least 40% of annual NHF collections into mortgage financing and increase its maximum mortgage loan from ₦50 million to ₦85 million.
The government is also targeting 2,000 mortgage bookings in 2026, rising to 5,000 annually by 2028, while expanding NHF membership from about six million to 10 million contributors within the same period.
The Federal Government has additionally set a target of processing mortgage applications within 30 working days using a simplified eight-document requirement.
However, FMBN said on October 30 that it was working towards the 30-day processing target and a maximum of eight documentation requirements, indicating that the measures are still being implemented.
The housing minister also encouraged informal-sector workers, including market traders, artisans and transport operators, to register with the NHF and make regular contributions to qualify for housing finance opportunities.
The expansion of the mortgage scheme comes as the Federal Government seeks to address Nigeria’s housing shortage by improving access to long-term financing and encouraging more workers to participate in the formal housing finance system.
