Federal Government to Repossess Properties of Retired Civil Servants with Unpaid Housing Loans
The Federal Government Staff Housing Loans Board (FGSHLB) has announced plans to recover mortgaged properties from retired civil servants who failed to fully repay their housing loans.
This was disclosed in a statement issued on Thursday in Abuja by FGSHLB’s Head of Information and Public Relations, Ngozi Obiechina. She quoted the Executive Secretary of the Board, Salamatu Ahmed, who stated that the initiative is part of efforts to enforce loan repayment agreements and ensure compliance.
Ahmed explained that the move follows a recent directive from the Office of the Head of the Civil Service of the Federation. In a memo signed by Patience Oyekunle, Permanent Secretary, Career Management Office, public servants were reminded that securing a Certificate of Non-Indebtedness from the FGSHLB and their respective MDA Staff Multipurpose Cooperative Society is a mandatory condition for retirement.
She noted that under Public Service Rule 021002 (p), civil servants are required to clear any outstanding debts before retirement, and the government is now preparing to enforce this rule more strictly.
“The Federal Government will begin seizing mortgaged properties from retirees who have not settled their housing loan obligations. This action is in line with the loan agreements signed and relevant civil service regulations,” Ahmed said.
She emphasized that the Board has begun compiling a list of retired public servants with unpaid loans. This list will be shared with appropriate authorities for further debt recovery action.
Ahmed also clarified that any civil servant who exits the service with an unsettled loan, whether still in service or already retired, risks forfeiting the mortgaged property to the government.
“All affected individuals are advised to regularize their loan status and obtain the necessary clearance certificates promptly,” she added.
The FGSHLB reiterated its commitment to enforcing repayment policies and ensuring the sustainability of the housing loan scheme for future beneficiaries.
