Housing Loans Board Moves to Recover Properties from Indebted Retirees

The Federal Government Staff Housing Loans Board (FGSHLB) has commenced the process of recovering properties from retired civil servants who failed to repay their housing loans in full.

This was disclosed in a statement issued on Thursday in Abuja by the Head of Information and Public Relations of the Board, Mrs Ngozi Obiechina.

According to the statement, the Executive Secretary of the FGSHLB Mrs Salamatu Ahmed confirmed that the Board has started compiling a list of retired civil servants who defaulted on their loan obligations.

The move is aimed at enforcing the terms of the mortgage agreements and ensuring compliance with repayment terms.

Ahmed explained that the recovery initiative follows a recent circular issued by Mrs Patience Oyekunle, Permanent Secretary, Career Management Office, Office of the Head of the Civil Service of the Federation.

The memo reminded public servants of the mandatory requirement to obtain a Certificate of Non-Indebtedness from the FGSHLB and the MDA Staff Multipurpose Cooperative Society before retirement.

She stated that the Board has the legal right to repossess mortgaged properties where retirees exit public service without fulfilling their loan repayment obligations.

The enforcement is in line with Public Service Rules 021002 (p) which mandates clearance of all indebtedness prior to 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,” Ahmed said.

The Executive Secretary urged all affected public servants, including already retired officers, to regularise their loan status and obtain the required clearance certificates without delay.

She further noted that the list of defaulting retirees would be forwarded to relevant regulatory agencies to facilitate recovery.

The Board reiterated its commitment to enforcing loan agreements and ensuring that public funds used for staff housing loans are fully accounted for.

The enforcement strategy is part of broader efforts to promote fiscal responsibility within the public service and strengthen the integrity of government loan programs.