FMBN launches non-interest lease-to-own mortgage in Kano
- FMBN has launched Ijarah Muntahia Bittamleek, a lease-to-own mortgage open to all eligible NHF contributors.
- Housing Minister Darma said the scheme should be judged by how many Nigerians become homeowners.
- The pilot estate in Bichi, Kano, has handed keys to its first beneficiaries.
The Federal Mortgage Bank of Nigeria (FMBN) has launched a non-interest mortgage product in Kano, giving contributors to the National Housing Fund (NHF) another route to owning a home.
The product is called Ijarah Muntahia Bittamleek, or lease-to-own. Under the arrangement, a buyer lives in the property under a lease and pays agreed amounts over a set period. Ownership passes to the buyer at the end of the term, provided the terms of the contract are met.
The launch held on Tuesday, 27 October 2026, according to a statement by FMBN's Group Head of Corporate Communications, Joe Abuku. The Minister of Housing and Urban Development, Muttaqha Rabe Darma, and FMBN Managing Director Shehu Usman Osidi were at the event.
Why it matters
More than six million Nigerians contribute to the NHF, but the bank has booked fewer than 500 individual mortgages in a year, Darma said. Many contributors stay away from interest-bearing loans, and the new product is meant to reach them.
Osidi said the scheme is not for one religious community or one part of the country. It is an extra option for eligible NHF contributors who prefer a non-interest arrangement, he said.
Darma said the government wants the product to be easy to use, with simple applications, faster processing and clear transactions. He said its success should be measured by how many Nigerians actually become homeowners, not by the launch itself.
He also asked FMBN to extend the scheme beyond Kano to Lagos, Port Harcourt, Enugu, Ibadan, Sokoto, Maiduguri and Abuja.
As part of the launch, the bank commissioned the FMBN-Ijarah-01 Estate in Bichi, Kano State, and handed keys to the first beneficiaries. The estate, built by AYAB Construction Company, has two- and three-bedroom bungalows.
Kano State Governor Abba Kabir Yusuf, represented by the Commissioner for Housing, Ibrahim Yakubu Adamu, welcomed the product and pledged the state's support. He said land in Lambu village has been set aside for a Renewed Hope City project.
Darma urged traders, artisans, transport workers and other informal-sector workers to register with the NHF and contribute regularly so they can qualify.
What happens next
FMBN did not disclose the product's costs, repayment period, property prices, eligibility thresholds or how many people the pilot covers. How far the scheme reaches will depend on those terms and on the bank's ability to take it beyond Kano.
The launch follows the National Mortgage Industry Policy issued in July 2026. The policy directs FMBN to release at least 40 per cent of each year's NHF collections as mortgages and to decide applications within 30 working days.
Sources differ on the new loan ceiling. Daily Trust reported that it rose from ₦50 million to ₦80 million, while ThisDay put it at ₦85 million.
The bank approved more than ₦208 billion in housing and mortgage loans in 2025, up from ₦71.5 billion in 2024, and financed 6,911 affordable housing units that year, according to figures Osidi gave on 19 October 2026.
