Federal Mortgage Bank Appeals to Abia Government for Support in Recovering Civil Servants’ Loan Repayments

The Federal Mortgage Bank of Nigeria (FMBN) has formally appealed to the Abia State Government to assist in recovering outstanding housing loan repayments owed by civil servants in the state.

During a courtesy visit to Governor Alex Otti in Umuahia, the Zonal Manager of FMBN in charge of the South-East, Mr. Emeka Nwosu, disclosed that a significant number of Abia State civil servants who accessed mortgage loans through the National Housing Fund (NHF) have defaulted on their repayment obligations. He stressed that the accumulation of unpaid loans is negatively impacting the bank’s ability to provide affordable housing support to new applicants.

“We are calling on the state government to step in and help us recover these outstanding payments,” Mr. Nwosu said. “Our mandate is to ensure that Nigerians, especially workers, can access affordable housing. However, loan recovery remains a major challenge in Abia, and it affects our sustainability.”

Mr. Nwosu also commended the state for its consistent contributions to the NHF scheme but urged for more active cooperation in enforcing loan repayment compliance among public sector beneficiaries. He suggested the possibility of resuming structured monthly deductions from salaries, where applicable, to address the backlog.

In his response, Governor Otti acknowledged the importance of home ownership as a critical aspect of social welfare and promised that the state would look into the issue. He emphasized the need for transparency and accountability in the process of loan administration and recovery.

“We’ll work with your team to verify the beneficiaries and ensure appropriate steps are taken to recover public funds, but we also expect that workers were properly educated on the terms of these loans,” the governor said.

The governor also hinted at possible collaboration with FMBN to develop more affordable housing projects in Abia State, noting that home ownership remains a key priority for his administration.

The appeal by FMBN underscores broader concerns over mortgage defaults across several states in Nigeria, as the bank continues efforts to balance its social housing mandate with financial sustainability.