The Federal Mortgage Bank of Nigeria has introduced a non-interest, lease-to-own mortgage product for contributors to the National Housing Fund, expanding alternatives to conventional interest-based home financing.
The bank announced the product, known as Ijarah Muntahia Bittamleek, through a statement issued by Joe Abuku, its Group Head of Corporate Communications, following the launch in Kano State on Tuesday, 27 October 2026. Under the arrangement, participants can occupy properties under a lease and later take ownership once agreed conditions and contractual obligations are satisfied.
FMBN Managing Director and Chief Executive Shehu Usman Osidi said the scheme was designed for eligible NHF contributors seeking an option outside interest-bearing mortgages. He said it is intended to broaden housing finance choices, support financial inclusion and widen access to homeownership, adding that participation is not limited by religion or geographical location.
Minister of Housing and Urban Development Muttaqha Rabe Darma asked the bank to keep the product easy to access, with simple application procedures, faster processing and transparent transactions. He said the scheme's success should be measured by the number of Nigerians who eventually become homeowners rather than by the launch itself, and urged FMBN to extend it to Lagos, Port Harcourt, Enugu, Ibadan, Maiduguri, Sokoto and Abuja.
As part of the launch, FMBN commissioned the FMBN-Ijarah-01 Estate in Bichi, Kano State, and handed over keys to the first beneficiaries under the pilot project. The estate, developed by AYAB Construction Company, comprises two- and three-bedroom bungalows supported by infrastructure and essential facilities. Darma also encouraged informal-sector workers, market traders, artisans and transport operators to register with the NHF Scheme and maintain regular contributions.
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.
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.
