The Federal Government has expressed concern that many civil servants are unable to access its housing loan schemes because of heavy salary deductions from multiple loans taken from commercial lenders.
Executive Secretary of the Federal Government Staff Housing Loans Board, Salamatu Ahmed, disclosed this at the quarterly forum of permanent secretaries and union leaders, organised by the Service Welfare Office under the Head of the Civil Service of the Federation (HCSF).
Ahmed explained that many workers resort to what she described as “sharp loans” from lending agencies, leaving their salaries heavily encumbered and making them ineligible for government-backed housing loans.
“Let me tell you why workers may find it difficult to access these loans. The majority have already mortgaged their salaries by taking a series of loans from agencies that operate sharp loan schemes,” she said. “At the end of the day, there is no way they can service additional housing loans. This is very sad.”
She noted that the situation was particularly worrying given that the loan ceiling had recently been raised to ₦20 million for senior officers. A special housing loan scheme had also been introduced for staff on Grade Levels 8 to 14, while the Board continues to partner with mortgage institutions and private developers to make home ownership more affordable.
Also speaking, Patience Onyekunle, Permanent Secretary of the Service Welfare Office, said the forum was designed to deepen dialogue between government and labour unions on welfare, industrial harmony, and productivity.
She highlighted several initiatives under the Federal Civil Service Strategy and Implementation Plan (FCSSIP 2021–2025). These include group life assurance for federal workers, the President’s ₦750 billion pension bond bill before the National Assembly, revival of the Nigerian Social Insurance Trust Fund (NSITF), free medical services at the HCSF complex, a review of recognition and reward policies, and an open-door policy with unions.
Usman Tumsah, Deputy General Manager of NSITF, added that the Fund is digitising applications and simplifying its claims process to ensure prompt compensation for workplace accidents and deaths. He explained that while federal workers are automatically covered under the Employee Compensation Scheme, many Ministries, Departments, and Agencies (MDAs) have yet to complete the required documentation, prompting ongoing sensitisation drives.
