On 19 October 2026, at the joint World Habitat Day and World Cities Day event in Abuja, the Federal Mortgage Bank of Nigeria (FMBN) announced two new products: a non-interest mortgage financing product and a rent assistance scheme aimed at easing rental costs for federal civil servants. Managing Director Shehu Usman Osidi said both would be launched before the end of October 2026.
For many Nigerians, an interest-free route to home ownership and help with rent are exactly what is missing. But at the time of writing, the details that matter most, from eligibility to amounts and repayment terms, have not been published. Here is what has actually been announced, what is still unknown, and how to get your file ready now.
The 30-second summary
- 19 October 2026: FMBN announces a non-interest mortgage product and a rent assistance scheme for federal civil servants.
- Launch was announced for before the end of October 2026; product details were not given.
- In 2025, FMBN approved more than ₦208 billion in housing and mortgage loans and financed 6,911 units.
- NHF contributions collected in 2025 reached ₦152.4 billion, up 48% from ₦103 billion in 2024.
- Whatever the final terms, an up-to-date NHF record and clean documents will be required.
What did FMBN announce on 19 October 2026?
Speaking at the joint commemoration of World Habitat Day and World Cities Day, themed around “Adequate Housing for All”, Mr Osidi said the bank would roll out non-interest mortgage financing as part of a wider expansion of its housing finance offer, alongside a rent assistance scheme designed to ease rental costs for federal civil servants.
These new products would sit next to FMBN’s existing offerings: the Rent-to-Own Scheme, Home Renovation Loans and the NHF Diaspora Mortgage Loan, which allows Nigerians abroad to take part in the National Housing Fund scheme. The announcement did not include eligibility rules, loan amounts, tenors, fees or the structure of repayments.
Where does FMBN stand going into these launches?
The bank used the occasion to present its 2025 results. It said it approved more than ₦208 billion in housing and mortgage loans, financed 6,911 housing units, or 96% of its annual target of 7,200, and disbursed over ₦120 billion for construction, mortgages, renovation, cooperative housing and rent-to-own. NHF contributions collected in 2025 rose to ₦152.4 billion from ₦103 billion in 2024.
Separately, the Minister of Housing and Urban Development has pushed for FMBN to direct 30 to 40 per cent of its mortgage bookings to the informal sector, with targets of 2,000 mortgages in 2026 rising to 5,000 by 2028, and a proposed rise in the maximum FMBN loan from ₦50 million to ₦85 million by 2028. Those are policy targets, not yet product terms. We covered the bank’s records and contribution checks in our article on checking your NHF contributions.
What is a non-interest mortgage?
A non-interest mortgage finances a home without charging interest on borrowed money. Instead, it typically uses structures such as cost-plus sale (murabaha), where the financier buys the property and sells it to you at an agreed, fixed mark-up payable in instalments, or lease-to-own arrangements (ijara), where you pay rent plus an ownership portion until the home is yours. The total cost is fixed and known in advance, which protects buyers from rising rates.
For buyers who avoid interest for religious or financial reasons, this matters: commercial mortgage rates in Nigeria have run at 20 to 28% or more, which shuts most households out. Our guide to interest-free alternatives to high mortgage rates explains how these structures compare. FMBN has not yet said which structure its product will use, or who will certify it.
What do we know about the rent assistance scheme?
Very little so far. FMBN said it is designed to ease rental costs for federal civil servants. It did not say whether it will take the form of a loan for annual rent paid upfront, a monthly payment plan, a subsidy or a guarantee to landlords, nor what it will cost.
The context is clear, though: in cities such as Lagos and Abuja, landlords commonly ask for one or two years of rent in advance, which forces many tenants into expensive short-term borrowing. If you are considering a private rent-financing product in the meantime, read our analysis of rent-now-pay-later schemes first: fees and penalties vary widely.
How can you prepare before the details are released?
Whatever the final terms, FMBN products rely on your National Housing Fund record. You can prepare now:
- confirm your NHF registration and get your NHF number;
- check your contribution history is complete and that your employer has remitted every deduction;
- gather payslips and an employer confirmation letter;
- prepare identity documents and your BVN details;
- if you already have a target property, collect its title documents and survey plan.
Gaps in contribution records are a common reason for delays. Fixing them now, before the launch, can save weeks.
How do you avoid scams around new housing schemes?
Every new government housing product attracts people offering to “fast-track” applications for a fee. Apply only through FMBN’s official channels, never pay an individual to process an application, and treat any offer that guarantees approval as a red flag. The same advice applied to the Renewed Hope Cities programme, as we explained in our article on avoiding fake allocation offers.
Sources
- “FMBN to Launch Non-Interest Mortgage, Rent Assistance Schemes Before October Ends”, The Economic Times Nigeria, 20 October 2026.
- “FG proposes N85 million mortgage ceiling, targets 5,000 mortgages by 2028”, Nairametrics, 16 October 2026.
Frequently asked questions
What new products did FMBN announce in October 2026?
A non-interest mortgage financing product and a rent assistance scheme for federal civil servants, announced on 19 October 2026 in Abuja, with a launch planned before the end of October.
Who will qualify for the FMBN rent assistance scheme?
FMBN said it targets federal civil servants. Detailed eligibility rules, amounts and repayment terms had not been published at the time of writing.
Is the FMBN non-interest mortgage halal?
It is designed to avoid interest, but FMBN has not yet said which structure it will use or who will certify it. Check the product documents and certification when they are published.
Do I need to contribute to the NHF to benefit?
FMBN products are built around the National Housing Fund. An up-to-date NHF registration and contribution record is very likely to be required.
How many homes did FMBN finance in 2025?
FMBN says it financed 6,911 housing units in 2025, 96% of its 7,200-unit target, and approved more than ₦208 billion in housing and mortgage loans.
Where should I apply?
Only through FMBN’s official channels once the products are launched. Never pay an intermediary who promises a guaranteed approval.
