Office of the Head of Service of the Federation (OHOSF) is to adopt the rent-to-own housing scheme developed by the Federal Mortgage Bank of Nigeria (FMBN) for allocation of houses under the Federal Integrated Staff Housing (FISH) programme to federal civil servants.
The Head of Service of the Federation, Mrs. Winifred Oyo-Ita disclosed this at the public presentation of FISH Handbooks on processes and procedures of the programme for both civil and public servants and the new corporate website at the International Conference Centre in Abuja.
She commended the management of FMBN for developing and introducing the innovative rent-to-own housing scheme to ease the financial burden of homeownership for Nigeria workers and increase access to affordable housing.
According to her, houses that are being built and commissioned under the FISH programme would be allocated using the rent-to-own scheme.
The new housing product, she said, makes it possible for workers to move into their homes and pay conveniently via monthly or yearly rentals over a 30-year period maximum at 9per cent interest rate.
She said: “The FMBN rent-to-own housing product provides a fantastic payment option for civil servants by making it possible for them to move into their homes and pay conveniently over long periods with monthly rent.
“Another key feature of the product is the elimination of the need for equity payment and other costs associated with a typical mortgage transaction. All completed and ongoing FMBN funded estates in over 20 states are eligible for the rent-to-own scheme for contributors to the National Housing Fund (NHF)”, she added.
Oyo-Ita extolled the Managing Director and Chief Executive Officer of FMBN, Ahmed Musa Dangiwa for his consistent support and commitment to the FISH programme, a scheme established to facilitate the provision of quality and affordable housing for federal civil servants through strategic partnerships with government agencies and private real estate developers.
She reiterated her office’s strategic funding partnership with the FMBN for the provision of off-taker support finance in the form of loans and mortgage finance to civil servants for the purchase of houses offloaded on the programme at single-digit rates.
The FMBN’s flagship contribution to the FISH programme includes the ABSI FMBN funded estate in Kuje 2, which comprises 83 housing units of 2-bedroom apartments.
The estate was commissioned in December 2018 and keys to the 83 housing units were given to the Head of Service of the Federation for handover to beneficiaries.
In his comments, Dangiwa expressed delight at FMBN’s association with the FISH programme and urged civil servants to take advantage of the National Housing Fund (NHF) and the FISH programme to become homeowners.
He said: “In our own way at FMBN, we are actively committed to ensuring the success of the FISH programme through the provision of mortgage loans from NHF scheme and the offer of some of our completed estates for the takeoff of the programme.
“We have also enhanced the mortgage affordability level of Nigerian workers by eliminating the need for down-payment for mortgage loans of N5 million and below and a reduction to 10per cent flat rate for loans above N5million to N15million from the initial 20per cent and 30per cent”, he added.