The Federal Government Staff Loans Housing Board has disbursed over one billion Naira as renovation loan to 2,000 civil servants across the country, its Executive Secretary, Dr Hannatu Fika, has said.
Fika made this known in an interview with Housing News Correspondent yesterday in Abuja.
She said the renovation loan was being managed by the loans board on behalf of the Federal Mortgage Bank of Nigeria (FMBN) as agreed in a Memorandum of Understanding signed in 2015 by the two agencies.
The Executive Secretary explained that the loan was initiated to help public servants who were the major contributors to the National Housing Fund (NHF)
“The labour unions have continuously complained that they have not gained anything from their monthly NHF contribution.
“So the two agencies decided to come up with this product of renovation loan, knowing that the NHF contribution of public servants is nothing to write home about.
“However, as of today, we have received 22,000 applications and we are paying them in batches on first come first serve basis and it is a short term loan for a period of four years,” she said.
Fika urged those who had applied and were yet to be paid to remain hopeful as they would get their loan soon.
The executive secretary pointed out that the renovation loan scheme was backed by law to ensure its sustainability.
Fika also noted that the loan emanated from the call by labour unions for the transfer of the monthly National Housing Fund contributed by civil servants to the board.
“The labour themselves, have been the ones clamouring for the transfer of the monthly NHF contribution from FMBN to the Loans board.
“The board then felt that it will be desirable if certain percentage of that contribution is released by the FMBN so that we can legally manage it and give account to the bank,” she said.