FG has moved to commence the massive recovering of defaulted housing loans from retired civil servants.
NewsOnline Nigeria reports that the Federal Government Staff Housing Loans Board (FGSHLB) has begun compiling the names of retired civil servants who defaulted on the repayment of housing loans they obtained during their years of service.
The move is part of efforts to recover mortgaged properties from retirees who failed to meet their loan obligations.
This initiative was disclosed in a statement on Thursday in Abuja by the Board’s Head of Information and Public Relations, Ngozi Obiechina.
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Obiechina quoted the Executive Secretary of the FGSHLB, Salamatu Ahmed, as saying that the Board’s actions are a direct response to a recent circular issued by the Permanent Secretary of the Career Management Office in the Office of the Head of the Civil Service of the Federation, Patience Oyekunle.
The memo reminded public servants that obtaining a Certificate of Non-Indebtedness from the FGSHLB and the MDA Staff Multipurpose Cooperative Society is a mandatory requirement for retirement.
According to Ahmed, the decision to begin compiling the list of retirees who owe housing loans aligns with the provisions of the Public Service Rules, which mandate that all public servants must obtain a Certificate of Non-Indebtedness before they can retire.
Ahmed further stated that the Board is prepared to take legal action to repossess mortgaged properties where applicable, in accordance with the loan agreement terms.
“This action aligns with the Public Service Rules 021002 (p), which mandates all public servants to obtain a Certificate of Non-Indebtedness as a prerequisite for retirement,” Ahmed said.
The FGSHLB has made it clear that it retains the legal authority to seize any mortgaged property from retirees who exit service without fulfilling their housing loan obligations.
“The FGSHLB retains the legal authority to repossess any mortgaged property if a public servant exits service without fulfilling their loan obligations,” Ahmed explained.
This directive also applies to retirees who are already out of service but still have outstanding loan balances. All affected public servants have been urged to regularize their loan status and obtain the required clearance certificates without delay.
The Board is actively compiling the names of retirees who have defaulted, and these names will be forwarded to the appropriate regulatory agencies to facilitate debt recovery.
“The board is actively compiling the names of such retirees, which will be forwarded to the appropriate regulatory agencies to facilitate debt recovery,” Ahmed said.
She reaffirmed the FGSHLB’s commitment to ensuring compliance with the terms of the loan agreements and following due process in recovering government-issued loans.
