‎The Federal Mortgage Bank of Nigeria (FMBN) has launched its Non-Interest Mortgage Product, Ijarah Muntahia Bittamleek (Lease-to-Own), to expand access to housing finance and provide eligible contributors to the National Housing Fund (NHF) Scheme with an alternative pathway to homeownership.

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‎The product was formally launched by the Honourable Minister of Housing and Urban Development, Engr. Muttaqha Rabe Darma, PhD, at a ceremony held at Tahir Guest Palace, Kano, on Tuesday, October 27, 2026.

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‎The Kano State Governor, Engr. Abba Kabir Yusuf, represented by the State's Honourable Commissioner for Housing, Arc. Ibrahim Yakubu Adamu, described the product launch as a significant milestone in Nigeria's housing finance industry. He noted that the initiative would help improve access to housing for more Nigerians and pledged the state government's support and collaboration with FMBN in advancing housing delivery.

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‎In his keynote address at the event, the Minister of Housing charged FMBN to implement the product based on four principles of simplicity in application, speed in processing, transparency in transactions and scale of delivery across the country. 

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‎He stressed that the success of the initiative would be measured not by the launch itself, but by the number of Nigerians who eventually become homeowners through it.

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‎“The test of this product is not today's launch but how many Nigerians become homeowners through it,” the Minister declared, urging the Bank to extend the initiative beyond Kano to other parts of the country, including Lagos, Port Harcourt, Enugu, Ibadan, Maiduguri, Sokoto and Abuja.

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‎In a significant development, the Bank also commissioned the FMBN-Ijarah-01 Estate in Bichi, Kano State, dedicated to the pilot implementation of the new product, and handed over keys to its inaugural beneficiaries.

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‎Developed by AYAB Construction Company, the estate comprises two- and three-bedroom bungalows built to quality standards and complemented by supporting infrastructure and essential facilities.

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‎The Minister, who commissioned the estate and presented the keys to the beneficiaries, described the development as evidence of the need to move beyond policy pronouncements to tangible housing delivery. “We don't just break ground; we deliver houses, and today, we are here to do just that,” he said.

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‎He urged Nigerians, particularly informal-sector workers, market traders, artisans and transport workers, to register with the NHF Scheme and make regular contributions to qualify for its housing finance opportunities. Affirming that FMBN was funding housing projects across Nigeria, he encouraged eligible Nigerians to take advantage of the available opportunities and invest in homeownership.

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‎Earlier in his welcome address, the Managing Director/Chief Executive of FMBN, Shehu Usman Osidi, described the launch as another deliberate step towards making homeownership more accessible, inclusive and responsive to the diverse aspirations of NHF contributors. 

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‎He noted that the initiative followed the launch of the FMBN Diaspora NHF Mortgage Loan in August 2026 and reflected the Bank's commitment to developing additional pathways to homeownership.

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‎Osidi explained that the Non-Interest Mortgage Product was developed to accommodate eligible contributors who prefer an alternative to conventional interest-based mortgage financing. Under the Ijarah Muntahia Bittamleek arrangement, he said customers occupy a property through a lease and, subject to the agreed terms and fulfilment of contractual obligations, ownership is transferred to them at the end of the arrangement.

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‎He emphasised that the product was not restricted to any particular religious community or geographical region but was designed to expand housing finance choices for eligible NHF contributors across the federation. 

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‎He affirmed that the initiative would deepen financial inclusion, broaden participation in the mortgage market and provide more Nigerians with opportunities to realise their homeownership aspirations.

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‎Expressing fulfilment at the commissioning of the estate and handover of keys to the inaugural beneficiaries, Osidi noted that housing delivery could only be fully realised when completed homes reached the people for whom they were intended. He said the handover demonstrated FMBN's commitment to ensuring that its housing finance interventions translated into tangible benefits for Nigerian families.

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‎The FMBN Chief Executive further assured NHF contributors of the enormous opportunities available through the Scheme and encouraged eligible Nigerians to participate and take advantage of FMBN's housing finance products. 

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‎In separate remarks, the Executive Director, Loans and Mortgage Services and Chairman of the Non-Interest Mortgage Product Committee, Dr. Muhammad Sani Abdu, and the Executive Director, Business Development and Portfolio Management, Mrs. Chinenye Chinedu Anosike, expressed satisfaction with the introduction of the product, noting its potential to broaden access to housing finance through a non-interest-based arrangement. They commended the Minister for his leadership and continued support for the Bank and congratulated the beneficiaries, urging them to build a community where everyone can thrive for the overall growth of the nation.

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‎The event was attended by FMBN's Executive Director of Finance and Corporate Services, Mr. Ibidapo Odojukan; members of the FMBN Board, Mr. Momoh Jubril, Mr. Nura Tijjani and Mr. Abdullahi Hamisu; the Kano State Honourable Commissioner for Finance, Dr. Ismaila Danmaraya; and other key stakeholders in the housing and mortgage finance sector.

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‎The launch reinforces FMBN's commitment to expanding housing finance options and advancing inclusive homeownership under the Federal Government's Renewed Hope Agenda.

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‎Joe Abuku

‎Group Head, Corporate Communications