FMBN launches non-interest lease-to-own housing scheme for NHF contributors

The Federal Mortgage Bank of Nigeria (FMBN) has introduced a lease-to-own housing finance scheme for National Housing Fund (NHF) participants, offering an alternative path to homeownership. Group Head of Corporate Communications, Joe Abuku, announced the non-interest mortgage product during its launch in Kano State on October 27, 2026.

Known as Ijarah Muntahia Bittamleek, the scheme enables beneficiaries to reside in homes via a lease agreement before securing ownership, contingent on meeting specified terms and contractual responsibilities. FMBN's Managing Director and CEO, Shehu Usman Osidi, said the initiative aims to cater to eligible NHF contributors seeking alternatives to traditional interest-based mortgage financing.

He emphasized that the scheme has no religious or geographical limitations, making it accessible to eligible NHF contributors nationwide. Osidi stressed that the scheme's success should be measured by the number of Nigerians who ultimately become homeowners, rather than the launch alone. Darma, a spokesperson, urged FMBN to expand the initiative to other Nigerian cities, including Lagos, Port Harcourt, Enugu, Ibadan, Maiduguri, Sokoto, and Abuja.

Following the launch, FMBN commissioned the FMBN-Ijarah-01 Estate in Bichi, Kano State, and transferred keys to the first beneficiaries as part of the pilot project. Developed by AYAB Construction Company, the estate features two- and three-bedroom bungalows, along with supporting infrastructure and essential facilities. Kano State Governor Abba Kabir Yusuf, along with FMBN's Minister, praised the launch as a significant milestone for Nigeria's housing finance sector and promised state government support for FMBN's efforts.

The bank's statement did not disclose the exact financing costs, repayment duration, property prices, eligibility criteria, or the number of beneficiaries participating in the pilot. This product follows FMBN's broader housing finance initiatives, with the bank approving over N208 billion in housing loans in 2025 and disbursing more than N120 billion for construction, mortgage financing, home renovation, and other housing-related projects.

The launch of the non-interest mortgage product comes after FMBN's introduction of the Diaspora National Housing Fund Mortgage Loan in London in August 2026, enabling eligible Nigerians abroad to finance residential property purchases in Nigeria. Under this scheme, contributors can secure loans up to N100 million at a 9% annual interest rate with a maximum repayment period of ten years.

The lease-to-own scheme is expected to provide eligible NHF contributors with additional financing options for homeownership, subject to the scheme's terms and FMBN's successful implementation.