The Federal Government, through the Federal Government Staff Housing Loans Board has announced plans to recover mortgaged properties from retired civil servants who failed to fully repay housing loans obtained during their service.
In a statement issued Thursday in Abuja, the Head of Information and Public Relations at the FGSHLB, Mrs. Ngozi Obiechina, quoted the Board’s Executive Secretary, Mrs. Salamatu Ahmed, as saying the move was aimed at enforcing loan recovery and upholding financial accountability.
Ahmed said the decision aligns with a recent directive from Mrs. Patience Oyekunle, Permanent Secretary, Career Management Office, in the Office of the Head of the Civil Service of the Federation.
The memo reminds public servants that obtaining a Certificate of Non-Indebtedness to the FGSHLB and the MDA Staff Multipurpose Cooperative Society is a compulsory condition for retirement.
“I am directed to bring to your attention the provision of Public Service Rule (PSR) 021002 (p), which mandates all public servants to obtain a Certificate of Non-Indebtedness as a prerequisite for retirement,” the statement read.
According to Ahmed, the Board will pursue legal means to repossess mortgaged properties from retirees who fail to settle their outstanding loan balances, in line with the terms of the agreements signed during loan disbursement.
“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,” she stated.
She stressed that the board retains the legal authority to recover such properties when public servants exit service with outstanding debt and added that the enforcement also applies to already retired officers who remain indebted.
Ahmed urged all affected public servants to promptly regularise their loan status and obtain their clearance certificates to avoid sanctions.
“The board is currently compiling a list of such retirees, which will be forwarded to relevant regulatory agencies for debt recovery,” she said.
“The FGSHLB remains committed to enforcing compliance and ensuring proper loan recovery procedures are followed,” she concluded.