FMBN Unveils Interest-Free Rent-To-Own Homes For NHF Contributors, Hands Over First Houses In Kano

FMBN opens new interest-free path to homeownership for NHF contributors

Nigerians contributing to the National Housing Fund now have another way to own their homes without paying interest.

The Federal Mortgage Bank of Nigeria has unveiled a new interest-free housing product that lets eligible NHF contributors live in a house as tenants first and become full owners later.

The product, called Ijarah Muntahia Bittamleek, which means lease-to-own, was launched on Tuesday, October 27, 2026 in Kano State. The announcement was contained in a statement by Joe Abuku, Group Head of Corporate Communications at FMBN.

Unlike the conventional mortgage that comes with interest, this new arrangement allows beneficiaries to move into houses under a lease agreement and pay gradually until ownership is transferred after meeting all contract terms.

According to FMBN, the product was created to give Nigerians who prefer non-interest finance an equal opportunity to own homes through the NHF window.

Managing Director and Chief Executive Officer of FMBN, Shehu Usman Osidi, said the scheme was deliberately designed to deepen inclusion and expand housing finance beyond interest-based models.

He explained that the product is not tied to religion, tribe or location. Any Nigerian who is an eligible NHF contributor and prefers a non-interest option can apply, irrespective of where they live.

Minister charges FMBN on easy access, wants scheme in Lagos, Abuja, Port Harcourt, others

Minister of Housing and Urban Development, Muttaqha Rabe Darma, who attended the launch, advised FMBN to keep the process simple, fast and transparent.

He said Nigerians will not judge the scheme by how colourful the launch was, but by how many families eventually get keys to their own houses.

Darma urged the bank to take the product to other major cities like Lagos, Port Harcourt, Enugu, Ibadan, Maiduguri, Sokoto and Abuja so that more contributors can benefit.

He also called on workers in the informal sector including market traders, artisans, transport workers and self employed persons to join the NHF and contribute regularly to qualify for such opportunities.

First FMBN interest-free estate commissioned in Bichi

FMBN used the launch to commission its first pilot estate under the new product, named FMBN-Ijarah-01 Estate, located in Bichi area of Kano State.

The estate was built by AYAB Construction Company and contains two-bedroom and three-bedroom bungalows with basic infrastructure already provided.

At the event, the minister officially commissioned the estate and handed over keys to the first set of beneficiaries, noting that the project shows how housing policies can be turned into real homes people can live in.

Representing Kano State Governor Abba Kabir Yusuf, the Commissioner for Housing, Ibrahim Yakubu Adamu, said the development is a major step for housing finance in Nigeria and assured that the state government will continue to support FMBN projects.

FMBN did not disclose in its statement the cost of houses, monthly lease amount, lease duration, qualification criteria or how many people benefited in the pilot phase.

From N71.5bn to N208bn – FMBN loan approvals jump in one year

The new interest-free product comes at a time FMBN is scaling up housing finance.

In 2025, the bank approved over N208 billion in housing and mortgage loans, up from N71.5 billion in 2024, representing over 191 percent increase. Disbursements crossed N120 billion covering construction finance, mortgage lending, home renovation and other housing needs.

The Managing Director said during World Habitat Day and World Cities Day commemoration in Abuja on October 19, 2026 that FMBN financed 6,911 affordable housing units in 2025, which is about 96 percent of its target of 7,200 units under the Presidential and Ministerial Deliverables.

NHF collections also grew to N152.4 billion in 2025 from N103 billion in 2024, indicating 48 percent growth, based on figures released in February 2026.

Earlier in August 2026, FMBN launched Diaspora NHF Mortgage Loan in London to enable Nigerians abroad to buy houses in Nigeria with loans up to N100 million at 9 percent interest rate and up to 10 years repayment, with online registration and remote contributions.

FMBN had also revealed plans to introduce rent assistance for federal civil servants before end of October 2026.

With the interest-free lease-to-own now launched, many contributors are waiting to see how affordable it will be, how fast applications will be treated and how quickly the bank will extend it beyond Kano to other states.