FMBN Launches Non-Interest Lease-to-Own Housing Scheme for NHF Contributors

The Federal Mortgage Bank of Nigeria (FMBN) has launched a non-interest lease-to-own housing finance scheme, giving eligible National Housing Fund (NHF) contributors another route to homeownership. The product, known as Ijarah Muntahia Bittamleek, was unveiled in Kano State on Tuesday, October 27, 2026.

Under the arrangement, beneficiaries occupy homes through a lease before ownership is transferred to them, subject to agreed terms and the fulfilment of contractual obligations. The bank announced the launch in a statement issued by its Group Head of Corporate Communications, Joe Abuku.

Open to all contributors, says FMBN

FMBN Managing Director and Chief Executive Shehu Usman Osidi said the product was developed for eligible NHF contributors who want an alternative to conventional interest-based mortgage financing. He stressed that the scheme is not restricted to any religious group or geographical location, and is open to eligible contributors across the country.

The bank said the initiative is meant to expand housing finance options, deepen financial inclusion and make homeownership more accessible to Nigerians with different housing needs.

Minister of Housing and Urban Development Muttaqha Rabe Darma urged the bank to keep the application process simple, speed up processing and ensure transparent transactions. He said the scheme's success should be measured by the number of Nigerians who eventually become homeowners, not by the launch itself.

Darma also asked FMBN to extend the initiative beyond Kano to Lagos, Port Harcourt, Enugu, Ibadan, Maiduguri, Sokoto and Abuja.

First keys handed over in Bichi

As part of the launch, FMBN commissioned the FMBN-Ijarah-01 Estate in Bichi, Kano State, and handed keys to the first beneficiaries under the pilot. The estate was developed by AYAB Construction Company and comprises two- and three-bedroom bungalows supported by infrastructure and essential facilities.

Darma commissioned the estate and presented the keys, describing the development as an example of the need to turn housing policies into completed homes Nigerians can occupy. He 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.

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 disclose the product's financing costs, repayment duration, property prices, eligibility thresholds or the number of beneficiaries covered by the pilot.

Loan approvals top N208 billion

The new product builds on FMBN's wider lending push. 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, about 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, growth of at least 191%. NHF collections reached N152.4 billion in 2025, up 48% from N103 billion in 2024, according to figures the bank released in February 2026.

The lease-to-own scheme follows the launch of the Diaspora National Housing Fund Mortgage Loan in London on August 7, 2026. That product allows eligible Nigerians abroad to borrow 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 contribute remotely, subject to the bank's eligibility and affordability checks.

Before the non-interest product launch, Osidi had 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 is now live, and its reach will depend on its terms, affordability, implementation and FMBN's ability to extend access beyond the Kano pilot.