Why many federal workers can’t access housing loans – FG

The Federal Government has explained why many federal workers are unable to benefit from its housing loan schemes, citing multiple deductions from their salaries for commercial lending agencies.

Hajiya Salamatu Ahmed, Executive Secretary of the Federal Government Staff Housing Loans Board, disclosed this at the Permanent Secretaries’ Quarterly Forum with Union Leaders, organised by the Service Welfare Office of the Office of the Head of the Civil Service of the Federation (HCSF).

According to her, most workers had already “mortgaged their salaries” by taking several loans from money-lending firms, leaving them financially incapable of repaying housing loans.

“Majority of them have already mortgaged their salary by taking series of loans from these agencies that operate ‘sharp loans’. At the end of the day, there is no way you can compel them to pay the housing loan. This is very sad,” she said.

Ahmed noted that the situation was troubling, particularly as the board had recently increased its loan ceiling to N20 million for senior staff and introduced a special scheme for officers on Grade Levels 8 to 14. 

She added that the government was collaborating with mortgage institutions and private developers to make housing more affordable for civil servants.

Declaring the forum open, Mrs Patience Onyekunle, Permanent Secretary of the Service Welfare Office, said the engagement was designed to strengthen dialogue between government and labour unions on staff welfare, industrial harmony, and productivity.

She highlighted several welfare initiatives under the Federal Civil Service Strategy and Implementation Plan (FCSSIP 2021–2025), including group life assurance for workers and the proposed ₦750 billion pension bond bill before the National Assembly.

Other welfare programmes, she said, include the revival of the Nigerian Social Insurance Trust Fund (NSITF), provision of free medical services at the HCSF complex, review of the recognition and reward policy, and an open-door engagement policy with unions.

 Speaking at the event, Mr Usman Tumsah, Deputy General Manager of NSITF, said the fund was digitising its processes to ensure timely compensation for workplace accidents and deaths. He urged MDAs to submit necessary documentation to fully enrol their staff, noting that all federal civil servants are already covered under the employee compensation scheme.

Also, Mrs Chika Ukachukwu, Chairman of the Ministry of Information and National Orientation Union, commended the government’s efforts but called for urgent improvements to the National Health Insurance Authority (NHIA).

She lamented delays and bottlenecks in accessing medical care under the scheme, describing them as discouraging for workers seeking treatment.

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