The Federal Government has introduced a non interest mortgage product in Kano through the Federal Mortgage Bank of Nigeria, offering eligible National Housing Fund contributors an alternative route to homeownership.
The product, known as Ijarah Muntahia Bittamleek, operates through a lease to own arrangement. Under the structure described at the launch, an eligible participant occupies a property, makes agreed payments over a specified period and takes ownership once the contractual conditions are met.
Housing and Urban Development Minister Muttaqhah Darma and FMBN Managing Director Shehu Osidi said the initiative was open to eligible contributors regardless of religion. They presented it as an additional financing option for people who prefer not to use conventional interest bearing mortgages.
Darma said more than six million Nigerians contribute to the National Housing Fund but that the bank has historically issued fewer than 500 individual mortgages annually. He argued that wider product choice, clearer procedures and better access to financing were needed to close the gap between contributions and actual home purchases.
The launch was linked to the National Mortgage Industry Policy issued in July 2026. According to the minister, the policy sets targets for the proportion of annual NHF collections deployed as mortgages, faster application decisions, a higher loan ceiling and more regular publication of mortgage data. These targets will require monitoring against actual disbursements.
A housing project at Bichi in Kano State was designated as the pilot location, with officials announcing plans to extend the product to other major cities. The government also outlined ambitions to expand NHF membership and create a diaspora contribution window.
Consumer safeguards are expected to include a charter explaining payments, ownership transfer and customers’ rights. The minister also referred to proposals for closer coordination of federal housing and mortgage institutions.
The initiative could broaden access for contributors previously excluded by product design. Its impact, however, will depend on the cost of homes, transparent lease terms, eligibility criteria, available housing stock and the speed with which approved applicants receive properties.
