The Federal Government Staff Housing Loans Board (FGSHLB) has initiated a crackdown on retired civil servants who have defaulted on housing loan repayments, signaling a significant policy shift to enforce compliance and recover public funds.
In a recent statement, FGSHLB’s Head of Information and Public Relations, Mrs. Ngozi Obiechina, announced that the Board is compiling a list of retired civil servants who failed to repay their housing loans fully. The Executive Secretary of the Board, Mrs. Salamatu Ahmed, emphasized that this action aligns with the Public Service Rules 021002 (p), which mandates all public servants to obtain a Certificate of Non-Indebtedness as a prerequisite for retirement. The Board plans to take legal steps to repossess properties from defaulters following the terms of the loan agreements.
According to the FGSHLB guidelines, if a borrower retires or disengages from service while still owing on their housing loan, the Board reserves the right to foreclose on the mortgaged property unless satisfactory arrangements are made to liquidate the outstanding balance.
This development is not entirely unprecedented. In 2019, the then Executive Secretary of FGSHLB, Dr. Hannatu Fika, expressed concerns over the non-repayment of housing loans by public servants. She noted that properties acquired through the loan scheme legally belong to the Board until the loans are fully repaid.
The Board’s current actions underscore the importance of fulfilling loan obligations. Retired civil servants who have not settled their housing loans risk losing their homes. The FGSHLB urges all affected individuals to regularize their loan status and obtain the required clearance certificate promptly.
The issue of housing loan defaults among public servants highlights broader challenges in Nigeria’s housing sector. Advocacy groups have called for the government to auction seized properties transparently and channel the proceeds into social housing initiatives to address the nation’s housing deficit.
As the FGSHLB intensifies efforts to recover owed funds, the situation serves as a reminder of the critical need for financial responsibility and the potential consequences of defaulting on government-backed loans.
