The Federal Government has announced plans to begin seizing properties from retired civil servants who defaulted on housing loan repayments, in a move aimed at enforcing accountability and recovering public funds.
The Federal Government Staff Housing Loans Board (FGSHLB) revealed this development on Thursday through its Head of Information and Public Relations, Mrs. Ngozi Obiechina, in Abuja.
According to the Executive Secretary of the Board, Mrs. Salamatu Ahmed, the decision follows a directive issued by the Office of the Head of the Civil Service of the Federation, which emphasized the importance of obtaining a Certificate of Non-Indebtedness as a mandatory requirement for retirement from the public service.
“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 stated.
She stressed that the FGSHLB retains the legal authority to repossess such properties based on the terms of the loan agreements, in accordance with Public Service Rule 021002 (p). The rule mandates all retiring public servants to present proof of full loan repayment before exit from service.
The Board is currently compiling a list of retirees with outstanding housing loan debts, which will be forwarded to relevant government agencies for enforcement and recovery actions.
Ahmed also warned that this policy is not limited to newly retiring officials but also applies to those who have already exited public service but remain indebted.
Affected individuals are advised to urgently regularize their loan status and obtain the necessary clearance certificates to avoid asset forfeiture.
“The board remains committed to enforcing compliance and following all due process in the recovery of public funds,” Ahmed said.
This move marks a renewed push by the government to improve financial discipline within the civil service and safeguard the sustainability of housing loan schemes.
