The Federal Government has announced plans to repossess mortgaged properties from retired civil servants who defaulted on housing loan repayments, in a renewed effort to recover government-backed funds.
The directive was issued by the Federal Government Staff Housing Loans Board (FGSHLB) on Wednesday. According to Mrs. Ngozi Obiechina, Head of Information and Public Relations at FGSHLB, the agency has begun compiling a list of defaulters.
Quoting the board’s Executive Secretary, Mrs. Salamatu Ahmed, the statement said the recovery move is in line with the Public Service Rule 021002 (p), which mandates public servants to obtain a Certificate of Non-Indebtedness as a condition 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,” Ahmed said.
Legal and Policy Backing
Ahmed emphasized that the FGSHLB is empowered to take legal action and recover any property still under mortgage by the board, especially if the beneficiary exits service without fulfilling repayment obligations.
The enforcement follows a memo by Mrs. Patience Oyekunle, Permanent Secretary at the Career Management Office, Office of the Head of the Civil Service of the Federation, reinforcing the no-clearance-no-retirement policy.
The crackdown also extends to already retired officers who are still indebted, with the board saying it will forward the list of affected individuals to relevant regulatory agencies for debt recovery procedures.
FG Warns Public Servants
FGSHLB is urging all affected civil servants—serving or retired—to regularise their loan status and obtain the required clearance certificate promptly to avoid sanctions.
