FG Plans To Seize Retirees’ Property Due To Unpaid Housing Loans

The Federal Government Staff Housing Loans Board (FGSHLB) has started compiling a list of retired civil servants who have defaulted on their housing loan repayments. Mrs. Ngozi Obiechina, the Head of Information and Public Relations, shared this information in a statement. The Executive Secretary, Mrs. Salamatu Ahmed, stated that the action aims to recover mortgaged properties from retirees who failed to meet their loan obligations.

This move follows a memo from Mrs. Patience Oyekunle, Permanent Secretary of the Career Management Office. Mrs. Salamatu Ahmed, the Executive Secretary of the Federal Government Staff Housing Loans Board (FGSHLB), explained that the memo issued by the Permanent Secretary emphasized the mandatory requirement for public servants to obtain a Certificate of Non-Indebtedness to both the FGSHLB and the MDA Staff Multipurpose Cooperative Society before retirement.

She added that the board would take legal action to repossess properties from retirees who have defaulted, as stipulated in their loan agreements. This move aligns with the provisions of the Public Service Rules 021002 (p), issued by the Office of the Head of the Civil Service of the Federation.

”I am directed to bring to your attention the provision of Public Service Rule (PSR) 021002 (p), which mandates all public servants to obtain a Certificate of Non-Indebtedness as a prerequisite for retirement.”

“The Federal Government will commence the seizure of mortgaged properties belonging to retiring federal public servants who have failed to fully repay housing loans obtained from the board,” she said.

Mrs. Salamatu Ahmed clarified that the FGSHLB holds the legal right to repossess any mortgaged property if a public servant leaves service without fully repaying their housing loan. She emphasized that this directive also applies to retired officers who still have outstanding loan balances. Ahmed urged all affected public servants to quickly regularize their loan status and obtain the necessary clearance certificate to avoid further legal actions.

“The board is currently compiling a list of such retirees, which will be forwarded to relevant regulatory agencies for debt recovery.

“The FGSHLB remains committed to enforcing compliance and ensuring proper loan recovery procedures are followed, ” she added.